Failed 2024

    Eaze

    Cannabis delivery faces federal illegality, state-by-state regulation, banking restrictions, and tax burdens that make profitability nearly impossible.

    Founded → Closed

    2014 → 2024

    Funding Raised

    $255M

    Industry

    Cannabis/Delivery

    Country

    USA

    IdeaProof AI Failure Score

    72/100
    Market Fit RiskBurn Rate RiskFounder Risk
    Market Fit Risk
    60
    Burn Rate Risk
    80
    Founder Risk
    35

    Full Analysis

    Eaze was the "Uber for weed" — a cannabis delivery platform operating in California. The company raised $255M but faced an impossible regulatory environment: federal illegality prevented normal banking, Section 280E tax rules eliminated standard deductions, and each city had different licensing requirements. Eaze filed for bankruptcy in 2024, joining a long list of cannabis startups destroyed by regulatory complexity.

    Could This Failure Have Been Prevented?

    IdeaProof's AI validates market demand, competitive positioning, and business model viability in minutes — catching the exact issues that sank Eaze.