Seed CX raised a $3.42m Seed round led, by Brookly Bridge Ventures and number of unnamed investors. If the startup gets regulatory approval, Seed CX will be the first trading platform for hemp. From there, the company plans to expand into other “nascent, illiquid” commodities.
The startup hopes to be up and running with its first commodities: hemp seed, whole hemp plant and whole hemp plant extract, by the time the farming season starts in May. The market for commodities, which dwarfs the stock market, allows traders to buy and sell anything from precious metals like gold to farm products like soybeans. As the U.S. government cuts subsidies for tobacco, many farmers in Kentucky have begun growing and processing hemp. Currently there are around 100 hemp farmers in the U.S. and 150 hemp processors. (Hemp farming and processing is federally legal under the Agricultural Act of 2014, but only in states with the proper infrastructure, which currently includes Kentucky and 26 others. Hemp itself is legal everywhere.) Woodford would not disclose how many farmers and traders had signed up to use Seed CX.