Wurk, a startup providing software for legal marijuana enterprises, announced new investment to the tune of $3.2 million provided by Poseidon Asset Management, Phyto Partners, Altitude Investment Partners, Arcview Investor Network and Arcadian Fund.
Reports in Green Market Report on Wednesday (April 11) said Wurk secured the funds in support of its software solutions for marijuana businesses that struggle to access adequate tools. The company provides its customers with legal payroll services to link them to the financial services space.
“Being able to move money is an issue with cannabis,” said Keegan Peterson, founder and CEO of the company. “A big issue with the other companies is the banking issue that they don’t resolve. We’ve partnered with institutions that can move money legally for payroll.”
Marijuana businesses operating legally under state law continue to face barriers to access of the financial services sector, governed by federal law, which maintains that marijuana is illegal. This dilemma has forced legal marijuana businesses, many of which are small businesses, to rely on cash and manual accounting practices.
“As the industry continues to grow, companies in the space need legitimate HR infrastructure to protect what they’ve built and set themselves up for growth and enable future expansion,” Peterson added.
Wurk links corporate clients with solutions that are customized based on individual state laws in which businesses operate.
Emily Paxhia, managing partner at Poseidon Asset Management, which led the funding round, said the firm is “thrilled” to again invest in Wurk.
“As investors focused on the cannabis space, we regularly see the HR, accounting and tax challenges that cannabis startups face on a frequent basis,” Paxhia said. “Wurk’s solution helps ease that massive burden on the industry and creates a huge investment opportunity in doing so.”
Wurk said it has already begun deploying the new funds to hire a chief technical officer and chief operating officer, while the company said it also plans to increase sales and customer service staff.