Retail cannabis operators often base business decisions on timely information or risk falling behind their competitors. Headset helps companies eliminate guesswork through market intelligence and data, with insights into consumer behavior sourced directly from retail.
Canopy Rivers had already acknowledged its belief in the importance of consumer data when Headset was raising its Series A in late 2018. Canada had just legalized cannabis federally and Headset was eyeing opportunities north of the border. Having expanded across four U.S. states with recreational cannabis markets, Headset required additional resources to grow its business. Recognizing the role that data analytics can play in helping comparable industries understand consumer behaviour, competition, and pricing, Canopy Rivers invested C$4 million in Headset’s Series A.
“It was a great fit for the business,” said Cy Scott, CEO and Co-founder at Headset. “In addition to capital, Canopy Rivers enabled us to build strategic relationships and helped our company navigate the emerging legal Canadian cannabis market. Headset grew its monthly recurring revenue by 185% and had a 91% increase in customers between December 2018 and June 2020.”
Since joining the Canopy Rivers portfolio, Headset has formed various partnerships including a strategic alliance with Nielsen and Deloitte. The company launched its competitive intelligence tool, Headset Insights, in British Columbia, Alberta, and Ontario. Headset also introduced product features such as new dashboards and the free Insights Pulse tool.
The company continues to attract media coverage for its timely reports on cannabis data, particularly around seasonal purchasing trends and COVID-19’s impact on consumer behaviour.
“We had over 200 media placements reaching over 13 million coverage views for our COVID reporting within the first month of the outbreak,” added Scott. “This demonstrates the power and relevance of our real-time data.”
Moving forward, Headset intends to further improve its product capabilities, form additional partnerships, broaden the scope of its reporting, and expand its business to more legal markets.
This is not an offer to sell or a recommendation to trade in any securities. This information is provided as of the date hereof. This document contains data obtained from third parties that Canopy Rivers has not independently verified. This document also contains forward-looking information within the meaning of Canadian securities law, which is based on certain assumptions. While management believes these assumptions are reasonable based on information available as of the current date, they may prove to be incorrect. Many assumptions are based on factors outside of Canopy Rivers’ control and actual results may differ materially from current expectations. Forward-looking information involves risks, including, but not limited to, the risk factors set out in Canopy Rivers’ most recent Management’s Discussion and Analysis and Annual Information Form. You should not place undue reliance on forward-looking information. Except as required by applicable law, Canopy Rivers assumes no obligation to update or revise any forward-looking information to reflect new events or circumstances.
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