Cannabox
Online community that gifts its members with monthly mystery boxes.
| Date | Investors | Amount | Round |
|---|---|---|---|
| N/A | €0.0 | round | |
* | $60.0k | Seed | |
| Total Funding | 000k | ||
Cannabox operates as a direct-to-consumer company in the cannabis accessories market, utilizing a subscription-based business model. Founded in 2013 by Michael Berk, the company was established in Phoenix, Arizona, to address a gap in the market for conveniently sourcing smoking essentials. Berk, a long-time cannabis user, was inspired by other subscription services like LootCrate and sought to create a similar curated experience for the cannabis community, especially as he found regular trips to sparsely available smoke shops impractical. After exiting a previous subscription-based business, he used the funds to launch Cannabox, positioning it as one of the first subscription boxes for cannabis accessories.
The core of the business is a monthly themed box containing 6-8 items such as glass pipes, bongs, rolling papers, and other gear. Revenue is primarily generated through monthly and other term-based subscription plans. This model is supplemented by an e-commerce platform, an online headshop, where customers can purchase individual items, including exclusive products from past boxes and items from well-known brands. A significant portion of the products are consumable, encouraging subscriber retention. The company reports that many of its glass pieces and gear are designed in-house.
Cannabox targets both new and experienced cannabis users, aiming to simplify the discovery and purchasing process. The company has demonstrated considerable growth, reporting $14.4 million in lifetime revenue by late 2021 and a 63.5% year-over-year revenue increase between 2019 and 2020. As of early 2021, the company had sold over 350,000 boxes and reached a monthly recurring revenue of around $350,000 with 11,000 subscribers. While Michael Berk is the founder, the team also includes Anthony, who joined in 2017 as creative director and head of marketing.
Keywords: cannabis accessories, subscription box, e-commerce, direct-to-consumer, online headshop, smoking supplies, consumer non-durables, Michael Berk, monthly subscription, curated products