Scotch, a Denver-based provider of an AI-native operating system for liquor store owners, raised $20 million in a Series A round.
Funding Round
VMG Partners led the round with participation from First Round Capital, Lerer Hippeau and Toba Capital, according to Crunchbase News. The raise follows a $10 million seed round closed in September 2024 and led by First Round Capital. The company reported greater than 500% year-over-year growth and more than $1 billion in processed payment volume.
Platform and Customers
Scotch supplies point-of-sale hardware, custom software, payment processing and back-office tools that manage state-by-state alcohol regulations. Its customers range from single-register boutiques to enterprise locations operating over a dozen lanes, including The Liquor Store of Jackson Hole, Big Bear Wine & Liquor, Corkdorks and Everest Spirits Superstore.
Background and Team
The company was formally incorporated in January 2024 by founders who previously built Skupos, a convenience-store software firm acquired by PDI Technologies in August 2023. CEO Jake Bolling and CRO Kevin Hodges started Scotch after market research showed the liquor retail sector lacked consolidated technology. CTO Dan Chen previously served as chief architect at Drizly, acquired by Uber for more than $1 billion.
Business Model and AI Features
Revenue comes from per-device SaaS fees, payment interchange and hardware sales. The platform embeds AI into inventory and vendor workflows, with the company stating it eliminates more than one full day of administrative work per week for owners. Scotch uses geographic sales representatives and partnerships with local trade associations to reach operators, according to Crunchbase News.
