Exclusive Interview with Springbig Co-Founder and CEO Jeffrey Harris
In November 2021, Springbig, the cannabis loyalty and marketing software company, announced its intention to go public through a SPAC transaction. Company Co-Founder and CEO Jeffrey Harris last spoke to New Cannabis Ventures in 2020, and registered to talk about the IPO process and the company’s ambitions to become a consolidator of the cannabis technology industry. Audio of the entire conversation is available at the end of this written summary.
The Springbig team began the IPO process in early 2021. They considered a number of avenues, ultimately deciding that the merger with Tuatara Capital Acquisition Corp. was the right way to go. The company is currently working on the shareholder voting process and will likely be listed on the NASDAQ as Springbig shortly thereafter, according to Harris.
Springbig is today a key player in cannabis loyalty and digital communication software. As a public company, it will seek to broaden its range of services and the possibility for its clients to engage with springbig. It will continue to grow through organic and inorganic routes.
Managing the public company
Harris’ role within the company will remain the same, although some of his responsibilities will change. But, he will remain in charge of ensuring that the company maximizes shareholder value.
Springbig has added a few new members to his team since Harris last spoke with New Cannabis Ventures. Paul Sykes joined the company as CFO and Navin Anand served as CTO. As the business goes public, a number of team members who have been with Springbig for some time will continue to be an integral part of its growth. Harris highlighted VP of Product Development Sam Harris, VP of Marketing Nat Shaul, VP of Business Development Mikaela Mclaughlin, VP of Customer Success Levi Colinas and VP and General Manager of the Brett Pogany brands.
Harris expects Springbig to add new people to the team to help the business move forward over the next six months.
M&A and organic growth
The springbig platform has evolved steadily over the past two years. The company works to help its customers create smarter ways to communicate with cannabis users. For example, springbig introduced a “build your own segment” feature that allows users to create a unique group of customers and create targeted marketing for that group. springbig also launched a brand platform, allowing brands to reach consumers directly. The company is also in the process of adding the ability for users to leverage data to optimize promotions without over-promoting and giving too much headroom.
The opportunity to become an industry consolidator was one of the main motivations behind Springbig’s decision to go public. Having public currency will help the company acquire other players and increase its capacities. He’s already focusing on potential merger opportunities, exploring opportunities in areas such as data, advertising, e-commerce, and marketing automation.
Springbig has over 1,000 customers with over 2,300 outlets in the retail industry. On the brand side, the company has around 100 customers, a number that is constantly growing. The company will have plenty of opportunities for organic growth as more states open up and more licenses are awarded.
Access to capital
PSPC has $ 200 million in cash. Harris expects some shareholders to withdraw their cash, but he expects Springbig to have enough cash to fund his organic and non-organic growth plans. Listing on NASDAQ will open the door to more access to capital. The company will likely offer secondary offerings in the future, according to Harris.
Until now, springbig has been private. As they transition to a public company, the team will need to get used to a different approach to investor relations. Springbig will need to provide updates on a quarterly basis and let investors know what to expect in the coming quarters.
With springbig set to make its public debut this year, organic growth in its retail and branded businesses as well as mergers and acquisitions will be major growth drivers. Year-over-year growth will be a critical metric for the business. Harris wants to make sure that Springbig will meet or exceed the projections given to the public. Although the IPO is uncharted territory for Springbig, Harris is confident in the company’s team, strategy and cash flow.
To learn more, visit the springbig website. Listen to the entire interview: