Legal cannabis is one of the fastest-growing industries, and it is newly legal. As the industry shifts from the black market into the mainstream, it has experienced unprecedented growth. Building an industry from the ground up takes a lot of hands: the cannabis industry has attracted entrepreneurs of all stripes, from cultivators to distributors to tech experts. The total piece of the pie is worth $20 billion. While the industry has already experienced rapid growth, it is still in its early stages and is expected to increase to $30 billion by 2025. The most challenging aspect of operating a business within the cannabis space is access to working capital. KeefX.co aims to bridge that gap by creating a pathway for cannabis businesses to have greater access to capital.
KeefX.co was founded by Isaac “Yitz” Klein, formerly Of Gideon Asset Management in NYC. Prior to founding KeefX, Klein spent 15 years in the private equity space. His mission with KeefX is to level the financial playing field for niche players in the cannabis industry.
Klein is setting foot into the cannabis arena with an abundance of expertise in growth capital. Previously, he spent two years working on financial strategies together with ownership of a vertically integrated grow and dispensary in New Jersey. Klein explains, “I was able to watch and learn as they went from 2M in sales to 20M, acquired and approved new dispensary licenses, perfected their craft, their brands, IP, and operations; the obvious pain-point I was able to see up close was growth and working capital; and the banks, well they just won’t get involved.”
KeefX partners with the grow house and provides buy now pay later solutions for the grower’s customer. By leveraging their tech, they ensure immediate payment to the grower. KeefX is aiming to help the grower get paid promptly. KeefX integrates with the Grow house, learns about its customers, and provides payment capital to the Grower immediately upon a purchase.
KeefX.co was developed into a tactical fintech firm that democratizes access to capital for cannabis companies. Yitz and his team founded KeefX at the height of the pandemic in 2020, and they recently launched out of its “Stealth Mode” in February of this year. For KeefX to operate effectively, it spent time establishing strong relationships with banking partners so that it can house its capital properly and provide prompt payments to Growers.
Traditionally, banks require months of time to determine approval on funding and for a cannabis business this can take longer and may never get approved. KeefX utilizes its developed tech to provide a payment solution within days.