Casa Verde Capital, a Los Angeles-based investment firm founded by entertainer Snoop Dogg, led a $3 million funding round for marijuana industry insurance provider Frontier Risk Group.
The deal also brings a traditional insurance company into the cannabis industry through a partnership between Frontier Risk and Illinois Casualty Co., according to a news release.
Connecticut-based Frontier Risk Group has is building a “tech-enabled insurance ecosystem” to serve the cannabis industry.
So far, the company has raised $6 million, the release noted.
Frontier Risk said it has “built a proprietary underwriting engine” with cannabis datasets to help reinsurers understand the risks associated with marijuana.
Frontier Risk founder and CEO James Whitcomb said his company’s first 18 months have proved there’s a need for specialty insurance solutions in cannabis and other regulated industries.
“This capital will allow us to continue our robust brokerage growth and complete our transition to full-stack retailer and capacity provider, offering the entire cannabis supply chain a one-stop solution to a diverse array of insureds with underwriting specific to highly regulated industries,” Whitcomb said in a statement.
