How Jeeter Built a $100M Cannabis Brand Without Traditional Venture Capital

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Jeeter launched in 2018 as a cannabis company that makes colorful, potent pre-rolled joints.

Here are the numbers behind the business:

• $400M in estimated annual revenue for 2024

• Sells 42M joints per year just in California

• Holds 40% of California’s pre-roll market

Here’s how Jeeter was able to achieve this insane growth without VC:

1. Build Strategic Partnerships That Allow You to Expand Without Increasing Capex

Initially, Jeeter didn’t raise capital.

Instead, they partnered with established cultivators using a revenue-sharing model.

The cultivator provided Jeeter with flower supply while the company focused on processing, branding, and distribution.

This allowed Jeeter to get the raw materials for its products without increasing its capex.

For their distribution, the company was also creative:

• Jeeter used net-15 payment terms with dispensaries (the industry standard is 30-60 days.)

• The company had volume-based incentives that encouraged larger orders.

• Jeeter had data-sharing requirements, which helped with inventory management.

One early distributor noted that the company’s products had a 30% faster turnover rate than other pre-roll brands, which made them a priority for shelf space.

2. Reinvest 80-85% of Your Profits Strategically to Fund Your Growth

Jeeter wasn’t playing the valuation game, looking for the next funding round.

Instead, they reinvested almost every dollar back into the business (reportedly 80-85% of the profits during their growth phase.)

But Jeeter didn’t reinvest their profits for the sake of it.

They made strategic investments in two key areas:

• Efficiency

Jeeter invested in pre-roll production equipment, which increased output by 300%. They also developed proprietary curing processes that improved product consistency.

• Brand building

Jeeter launched limited-edition drops, which helped build hype and drive interest. They also developed a distinctive packaging that stood out.

As a result, their “Jeeter Juice” branded line became a hit in California, breaking records for California dispensary sales upon its launch.

3. Use Revenue-Based Financing to Expand Into New Markets Without Giving Up Equity

When Jeeter wanted to expand their production facilities, they didn’t run to angel investors or VCs.

Instead, they used equipment financing for major machinery, which came with 8-12% interest typically.

For their real estate deals, Jeeter used sale-leaseback agreements and also negotiated vendor financing with key suppliers on 60-90-day terms.

The company also had a great strategy for expanding into new states.

They used revenue-based financing, which meant:

• Jeeter got capital based on projected revenue.

• Repaid it as a % of monthly sales, typically 3-8%.

• Didn’t give up equity, and there was no fixed repayment schedule or maturity date.

The company was always carefully managing cash flow while scaling, so they used inventory factoring to get upfront capital against finished goods.

As a result, they got 70-80% of inventory value upfront while paying a fee of 1-3% per month until it’s sold.

This helped Jeeter escape the cash crunch that killed most growing cannabis brands.

Right now, the company is in a great place:

• Founders have maintained majority ownership, estimated around 80%.

• It expanded into new markets without relinquishing control.

• They have built infrastructure that supports their continued expansion.

Jeeter’s story shows that you can build a massive company without using traditional financing methods like venture capital.

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