Fyllo
| Technology company | |
| ISIN | 🆔 |
| Founded 📆 | March 2019 |
| Founder 👔 | |
| Headquarters 🏙️ | Chicago, Illinois |
Area served 🗺️ | |
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| Members | |
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| 🌐 Website | [Lua error in Module:WikidataIB at line 665: attempt to index field 'wikibase' (a nil value). ] |
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Fyllo is a technology company operating a cloud-based software platform that aims to enable online publishers and cannabis brands to meet compliance requirements on a large scale. For cannabis brands, Fyllo offers marketing compliance infrastructure and technology for advertising, campaign planning, execution, and optimization. For online publishers, Fyllo offers tools enabling age-gated inventory, making it compliant for cannabis advertising campaigns. It has both buy-side and sell-side applications. Fyllo is headquartered in Chicago, Illinois and maintains satellite offices in New York, Los Angeles, Denver, and Haifa.[1]
Founders and Financing
Fyllo was founded in March 2019 by former Amobee Chief Revenue Officer, Chad Bronstein (CEO) and Brent Skoda (Chairman), alongside Co-Founders Aristotle Loumis (COS), Erik Shani (CPO), and Michael Chock (COO). The company is financially backed by JW Asset Management and K2 & Associates among others; as of October 2019, the company had raised $18 million in seed money. JW Asset Management is well-known in the cannabis space, having made early-stage investments in current industry leaders TerrAscend and Canopy Rivers.
Board of Directors
As of October 2019, Fyllo had appointed four people to its board of directors:[2]
- Clive Sirkin, Former Chief Growth Officer, Kellog, Managing Director, Leo Burnett Worldwide
- Lorne Gertner, Chairman, HG2 Capital Corporation, Co-Founder, Tokyo Smoke
- Jason Klarreich, Managing Director, JW Asset Management
- Katie Ford, Head of Global Brands, Twitter
Industry Overview
Cannabis
Total United States legal cannabis retail sales are expected to reach $11.2 to $13.7 billion by the end of 2019, and forecasted to grow to $25 to $30.4 billion by 2023.[3] When compared to total retail sales, the aggregated spend on media by cannabis retailers is significantly lower, coming in at $4.1 million in 2018.[4] $3.5 million, or 85% of the total spend, was on out-of-home advertising, while digital media accounted for $200,000 or roughly 4% of the $4.1 million spend.
With total digital ad spending in the U.S. reaching $129.34 billion in 2019, the cannabis space is being excluded from the most popular form of media.[5] Industry professionals are left with a choice to either maintain compliance at the cost of highly localized promotions or risk facing harsh consequences in an attempt to scale their marketing efforts.
Compliance
In the United States, the use and possession of cannabis is illegal under federal law for any purpose via the Controlled Substances Act of 1970. In recent years, significant legislation has been passed by a total of 33 state governments legalizing the substance commercially for either medical or recreational use.[6]
The discrepancy between state and federal laws surrounding cannabis has created myriad restrictions that regulate how cannabis brands and retailers may promote.[7] Since cannabis is illegal at the federal level, it cannot be advertised on TV. Similarly, digital platforms with extensive reach, such as Facebook and Google, have banned cannabis promotions from their respective platforms.[8][9] Companies who violate these policies risk having their campaigns shut down immediately, while repeat offenders are subject to permanent account suspensions. Moreover, each state that has approved legalization is responsible for shaping its own rules and regulations governing the space, as there is no unified federal legal framework. Currently, industry professionals are left to navigate a complex patchwork of marketing regulations that vary from state to state.[10]
References
- ↑ Dalke, Jim (9/4/2019). "Chicago Upstart Lands $16M to Help Cannabis Brands With Advertising". Chicago Inno. Unknown parameter
|url-status=ignored (help); Check date values in:|date=(help) - ↑ https://www.forbes.com/sites/martyswant/2019/09/26/cannabis-tech-startup-fyllo-announces-new-funding-as-advertising-execs-join-the-board/#606f75e85a0b
- ↑ "Exclusive: US retail marijuana sales on pace to rise 35% in 2019, hit $28B by 2021". Marijuana Business Daily. 2019-05-30. Retrieved 2019-10-10.
- ↑ "Kantar - The Marijuana Ad Market Is Taking Root". us.kantar.com. Retrieved 2019-10-10.
- ↑ "US Digital Ad Spending Will Surpass Traditional in 2019". eMarketer. Retrieved 2019-10-10.
- ↑ "State Marijuana Laws in 2019 Map". www.governing.com. Retrieved 2019-10-10.
- ↑ "Weed-tech startup raises $16 million". Crain's Chicago Business. 2019-09-04. Retrieved 2019-10-10.
- ↑ "Advertising Policies". www.facebook.com. Retrieved 2019-10-10.
- ↑ "Healthcare and medicines - Advertising Policies Help". support.google.com. Retrieved 2019-10-10.
- ↑ reporterEmailEmailBioBioFollowFollow, Rachel Siegel closeRachel SiegelNational business. "Even where it's legal to sell marijuana, it's hard to advertise it". Washington Post. Retrieved 2019-10-10.
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