Software makes cannabis customers loyal

In November 2021, cannabis loyalty and marketing software company Springbig announced plans to go public via a SPAC transaction. Jeffrey Harris, the company's co-founder and CEO, last spoke to New Cannabis Ventures in 2020 and came forward to discuss the company's IPO process and the company's ambitions to become a consolidator of the cannabis technology industry. The tone of the entire conversation is available at the end of this written summary.

Going public

The springbig team began the IPO process in early 2021. It considered a number of avenues and ultimately decided that the merger with Tuatara Capital Acquisition Corp. is the right way. The company is now working on a shareholder vote and will likely be listed on Nasdaq under the name springbig shortly thereafter, according to Harris.

Today springbig is a major player in cannabis loyalty and digital communication software. As a listed company, it will try to expand its range of services and the opportunities for its customers to get in touch with springbig. The company will grow organically and inorganically.

The management of the public company

Harris' role in the company will remain the same, although some of his responsibilities will change. However, he will continue to be responsible for ensuring that the company maximizes value for shareholders.

Since Harris' last conversation with New Cannabis Ventures, springbig has hired a few new team members. Paul Sykes has joined the company as CFO and Navin Anand has taken on the role of Chief Technology Officer. As the company goes public, a number of team members who have been with Springbig for some time will continue to play important roles in the company's growth. Harris highlighted Vice President of Product Development Sam Harris, Vice President of Marketing Nat Shaul, Vice President of Business Development Mikaela Mclaughlin, Vice President of Customer Success Levi Colinas, and Vice President and GM of Brands Brett Pogany.

Harris anticipates that Springbig will be adding a few new employees to the team over the next six months to help move the company forward.

M&A and organic growth

The springbig platform has continuously developed over the past two years. The company is focused on helping its customers find smarter ways to communicate with cannabis users. For example, springbig has introduced a "create your own segment" feature that enables users to create a unique customer group and target that group with targeted marketing. Springbig has also introduced a branding platform that enables brands to talk directly to consumers The company is also in the process of giving its users the ability to use data to optimize promotions without doing too much advertising and giving away too much margin.

The opportunity to become an industry consolidator was one of the main motivations behind springbig's decision to go public. The IPO will help the company take on other players and expand its capacities. The company is already focused on potential merger opportunities and is exploring opportunities in areas such as data, advertising, e-commerce, and marketing automation.

springbig has over 1,000 customers with more than 2,300 locations on the retail side. On the branded side of the business, the company has around 100 customers, a number that is steadily growing. As more states open up and more licenses are granted, the company will have numerous organic growth opportunities.

Access to capital

The SPAC has $ 200 million in cash. Harris anticipates some shareholders will withdraw their money, but expects Springbig to have sufficient cash to fund his organic and non-organic growth plans. The listing on NASDAQ will open the door to more capital access. Harris said the company will likely run some secondary offerings in the future.

Up until now, Springbig was a private company. As the team moves to a publicly traded company, they will have to get used to a different approach to investor relations. springbig will have to provide quarterly updated information and inform investors about what to expect in the coming quarters.

Outlook for 2022

With Springbig going public this year, organic retail and branded growth, as well as mergers and acquisitions, will be major growth drivers. Year on year growth will be a critical metric for the company. Harris wants to make sure Springbig meets or exceeds projections for the public. Although the IPO is uncharted territory for Springbig, Harris is convinced of the team, the strategy and the liquidity of the company.