Investments in the cannabis industry are suddenly en vogue.
Y Combinator (YC) – a business accelerator that helped get Reddit, Airbnb and Dropbox off the ground – has invested in San Francisco-based Meadow, which offers a cannabis delivery app that connects patients and dispensaries.
Meadow also recently launched CannabisMD, where patients can schedule house calls by specialized physicians allowed to prescribe marijuana.
While terms of the deal weren’t disclosed, YC says on its website that a “standard deal” involves investing $120,000 for 7% ownership, though it does deviate from that in “exceptional cases.”
YC has funded more than 700 startups since 2005, and those companies now have a combined valuation topping $30 billion, according to its website.
The firm’s investment comes after Pay Pal co-founder Peter Thiel’s Founders Fund and Tao Capital Partners both pumped money into marijuana-related companies.
David Hua, the founder of Meadow, said in a press release that its app is akin to grocery-delivery service Instacart and food-delivery company GrubHub.
Cannabis delivery apps have had their fair share of legal issues. Los Angeles recently sued Nestdrop, saying the delivery app flies in the face of a law that bans delivery services in the city.