Sweet Reason Beverage has raised $2.5m in its seed investment round.

Venture capital firm Lerer Hippeau led the round, which saw the participation of RiverPark Ventures (Spindrift, Cargo), Max Ventures (Boxed), cannabis investor Subversive Capital via Privateer Holdings, and a group of angel investors.

Lerer Hippeau previously invested in several popular consumer brands, including Glossier, Warby Parker, Allbirds, Casper and Soylent.

Sweet Reason is a New-York-based cannabidiol (CBD) infused beverage company that was launched in December 2018. The firm is currently available in more than 200 New York and online retailers, including Dean & Deluca, Westside Market, City Acres, Standard Dose and Inscape.

The company will use the funding to support its growth efforts through building a sales team, increasing brand awareness and creating a community of health-forward consumers.

Sweet Reason Beverage founder and CEO Hilary McCain said: “Sweet Reason’s mission is to be the leading hemp and cannabis beverage company in North America. We are thrilled to have completed our first capital raise, led by Lerer Hippeau.

“We have an incredible group of investors with deep consumer, cannabis and food industry expertise, which will help Sweet Reason bring the highest quality and best tasting CBD beverages to consumers across North America.”

Sweet Reason’s naturally flavoured sparkling water consists of a bioavailable, water-soluble CBD that is CO2-extracted from organic Colorado hemp.

The company claimed that its water was formulated so that consumers can experience the health benefits of CBD without the harmful effects of sugar. Each 12oz bottle contains no sugar, sweeteners, sodium, carbohydrates or artificial ingredients.

Sweet Reason’s water is available in Grapefruit, Cucumber Mint and Strawberry Lavender flavours for a manufacturer’s suggested retail price (MSRP) of $5.99.

Lerer Hippeau’s Caitlin Strandberg said: “With Sweet Reason, we’re betting on a team that’s laser-focused on delivering superior quality and building a best-in-class brand.

“Hilary’s deep domain expertise in the food industry, as well as her passion for health and wellness, will accelerate Sweet Reason into a category leader.”