Special Interview with C15 Solutions Creator and CEO Scott Samuel
Cannabis innovation business C15 Solutions is partnered with billion-dollar software application business Veeva Systems (NYSE: VEEV) to supply an electronic quality management system (eQMS) focused entirely on the worldwide cannabis market. Creator and CEO Scott Samuel consulted with New Cannabis Ventures about his business’s platform, combinations and prepare for development. The audio of the whole discussion is offered at the end of this composed summary.
The Skilled Group
Samuel has actually formerly worked as a financial investment lender and a legal representative. His experience in the software application company led him to introduce C15 Solutions, which is based in Canada. He was serving in the C-suite of Skura Corp., which was ultimately offered. Throughout this time, he ended up being acquainted with Veeva in the huge pharma sector. After the sale of Skura Corp., a few of its executives signed up with Veeva. His connection to Veeva and his desire to introduce a quality management system for cannabis resulted in C15 Solutions.
Samuel co-founded the business with Xin Guo, who likewise acted as an executive at Skura Corp. Samuel focuses more on the profits side of business, while Chief Operating Officer Guo handles the reputational side. Other essential members of the C15 Solutions management group consist of Vice President of Item Solutions Roy Gazdar, Vice President of Customer Solutions Daryl Grayson and Vice President of Sales and Marketing Sean Samuel.
The C15 QualityOne Platform
The C15 QualityOne Platform is a cloud-based SaaS quality and compliance service for cannabis business. The extensive eQMS system has numerous parts, such as standard procedure, compliance training, automated workflows and quality occasions.
This year, the business likewise included Threat Analysis Important Control Points (HACCP) to its platform. C15 is most likely the only business to have actually included this food security prepare for edibles and drinks to its eQMS, according to Samuel.
The core user group for the platform consists of quality control, quality assurance, production personnel and stock management personnel.
Establishing New Characteristic
C15 routinely presents brand-new functions to additional expand its platform, and a lot of those updates are established based upon consumer feedback. For instance, the business is getting ready to introduce a yearly item quality evaluation function and a quality index rank. Consumers will have the ability to in complete confidence rank their SKUs versus their peers to figure out where they stand in regards to quality.
C15 has consumers in 5 nations: the United States, Canada, Denmark, Colombia and Australia. Samuel anticipates that the business’s addressable market covers as numerous as 4,000 centers. It is simply starting to construct its worldwide market penetration.
Today, the United States is the business’s main focus. With numerous big consumers in the U.S., C15’s platform is at operate in markets like California, Colorado, Michigan, Virginia, Illinois and New York City.
The C15 group is keeping a close eye on other worldwide markets, such as Israel, Mexico and Europe. So far it has actually concentrated on using its eQMS system, however it might even more broaden its market search with other items.
C15 intends to be more of a partner than a supplier to its customers. The business serves a few of the biggest laboratories in the U.S. and Canada, big U.S. MSOs, growers, extraction centers, producers, edibles business, brand names and more. The business has actually constructed a strong credibility and motivates its potential customers to request for referrals from its consumer base, according to Samuel.
Veeva is C15’s innovation partner, however the business likewise takes a collective technique when it concerns dealing with other software application business. The business’s platform does not take on ERP and seed-to-sale platforms. Rather, it functions as an enhance to these options. C15 has a library of more than 300 APIs, working to incorporate with other options throughout the cannabis market.
The business does not charge for combinations, deciding to adhere to budget-predictable SaaS costs. C15 incorporates with systems, such as Foundation, due to the fact that its consumers are typically thinking about knowing circulation easily in between software application options
While it can be hard to determine real market share when a lot of its rivals are personal, C15 does thoroughly track its position in the market. For instance, the business takes a look at the rate of assessments it has the ability to win. Over the previous 18 months, C15 has actually won around 70 percent of the orders it competes for, a testimony to its platform, credibility and abilities, according to Samuel.
As an ex-investment lender, Samuel has actually thought about M&A as a course for development. The business does not have anything on a target list today, however the concept of pursuing acquisitions is on the table. As the business broadens its relationship with combination partners, an M&A chance might emerge. However, any prospective offer would require to be a culture and innovation fit.
In regards to natural development, the business is on track to more than double its company. In addition to its eQMS, C15 has access to other options it can manage of the rack to additional drive development.
In General, the COVID-19 pandemic has actually had a favorable influence on cloud-based SaaS business, according to Samuel. This year has actually highlighted the issues in manual compliance, which is competitors for business like C15.
While the total effect has actually been favorable, C15 did need to compete with postponed profits at the start of the pandemic. A variety of prospective consumers in its pipeline required to go back when their budget plans were postponed. That short-term hold-up appears to have actually pertained to an end, according to Samuel.
Throughout the pandemic, the C15 group likewise discovered that a few of its consumers were utilizing its platform in unanticipated methods. Consumers were trying to find methods to turn the platform into more of a business service. The C15 group saw a growing need for abilities it didn’t always market to its target user neighborhoods. Consumers likewise concerned C15 with particular concerns to fix, which the group invites. A number of its finest practices have actually derived from an excellent discussion with consumers, according to Samuel.
C15 has actually raised around C$ 2 million throughout a number of various fundraising rounds, according to Samuel. The business has a mix of financiers, consisting of an openly noted little equity capital car and high-net-worth people. It likewise got a financial investment from among its consumers. The business did refrain from doing a loved ones round. Furthermore, C15 has one typical share class, according to Samuel.
Samuel does anticipate the business to raise more cash in the future, however the specific technique and timeline are not set. He has actually considered the general public technique however believes it is still prematurely. Financing in the near-term is most likely to come from the personal side, household workplaces and/or organizations. Samuel works to make sure the business’s and investors’ goals stay lined up.
C15 is set to strike the breakeven point this year, attaining that in a little less than 24 months. The business has yearly repeating profits in the high millions, and it anticipates profits to more than double next year. Structure out business advancement group is a primary focus, as a bigger group might assist drive additional development. Furthermore, the business is preparing to open a workplace in the Midwestern U.S. in 2021.
While the business tracks top-level metrics like yearly repeating profits, it likewise drills to the granular level, taking a look at metrics around its sales cycle. The sales cycle is somewhat longer than the business prepared for, however the greater expense of consumer acquisition (CAC) settles when it concerns the consumer life time worth (CLV). C15’s consumer churn rate is exceptionally low.
Informing potential consumers about the worth of a quality management system stays an obstacle. Not all consumers comprehend what this type of system does and how it suits their budget plan. However, Samuel is positive in C15’s continued capability to grow and to fix the obstacles facing its consumers.
To read more, check out the C15 Solutions site. Listen to the whole interview: