Case Study: Nabis
Nabis is a distribution platform for cannabis products in California and Nevada. By utilizing their skills in computer programming Vince and Jun were able to create a cannabis distribution and deliver company
- Pivot to Cannabis:
- In 2017, with the California cannabis market legalization, Lee saw a chance to enter an underdeveloped market with potential for significant impact.
- His exposure to cannabis culture in California challenged his prior perspectives on the plant, making him recognize its role in personal wellness and social connection.
- Nabis Founding and Growth:
- Lee co-founded Nabis with Vince Cordero, initially handling both coding and driving deliveries.
- Nabis started with a straightforward service promise: delivering cannabis products reliably and professionally, targeting a previously loosely regulated market with challenges in logistics.
- Product-market fit was quickly realized, as deliveries grew from five per week to twenty in just weeks.
- Market Presence and Scale:
- Nabis now distributes 20% of cannabis products in California, moving $1 billion worth of products annually with a team of 350.
- They developed proprietary software to handle logistics, addressing the unique needs of the cannabis industry, which faces regulatory challenges and limited access to off-the-shelf logistics solutions.
- Challenges and Perseverance:
- Initial capital came from friends and family, as traditional investors avoided cannabis due to regulatory risks.
- The company had to convince banks and large investors over time as they grew, with VCs increasingly seeing cannabis as a lucrative market opportunity.
- Vision and Entrepreneurial Drive:
- Lee sees Nabis as only the start of his entrepreneurial journey and aims to tackle other complex, large-scale problems in the future.
- His message emphasizes the value of venturing outside one’s comfort zone to make a substantial impact, regardless of one’s background.