DEMECAN, only German manufacturing and trading firm in the European market, raises 7 million Euros for expansion of wholesale trade in Germany

DEMECAN, only German manufacturing and trading firm in the European market, raises 7 million Euros for expansion of wholesale trade in Germany

Demecan, which is based in Berlin, is a producer of medical cannabis, which got legalized in the country back in 2017. It is amongst the growing number of cannabis startups in Europe. The complete value chain for medical cannabis is covered by this startup from the process of cultivating, processing, and storing to distribution to the pharmacies.

At present, Cannabis is being used for the treatment of a number of medical conditions. These are inclusive of relieving nausea for cancer patients who undergo chemotherapy, enhancing appetite in people with AIDS or HIV, bringing a reduction in chronic pain, helping those who experience anxiety and for the treatment of severe forms of epilepsy.

DEMECAN was founded in 2017 and was awarded a contract for growing medical cannabis this year in May by the Federal Institute for Drugs & Medical Devices. As of 2020, DEMECAN will be supplying medical cannabis to Germany’s Federal Republic. In a plant near Dresden, the cultivation, as well as, further processing of medical cannabis takes place.

Almost a Series A round of 7 million Euros has been raised by the startup, which will be used for the expansion of the production facility and extensive trade of medical cannabis in Germany. It is the first-ever investment into this sector to venture capital firm btov Partners.

Jennifer Phan from btov Partners passed a statement which said that DEMECAN operates in a highly striking market at the right time. Germany presently gives a representation of the world’s 3rd largest market for medical cannabis and is on a track for growth. He added that they believe that the firm has an advantage of a first mover in an extremely regulated market environment, particularly as it is the sole manufacturing and trading firm of Germany in the European market.