Cannabis point-of-sale platform Flowhub announced on Tuesday the closing of a $19 million round of strategic funding, including significant participation from venture capital firms Headline and Poseiden as well as a personal investment from entrepreneur and hip-hop billionaire Shawn “Jay-Z” Carter.
The new round of funding for Flowhub brings the total amount of capital raised for the company to $50 million with a valuation of $200 million, according to a statement from the cannabis dispensary payment transactions processor.
“We are thrilled to announce this capital raise,” said Kyle Sherman, founder and CEO of Flowhub. “Headline is an incredible, Silicon Valley-based venture capital firm, Poseidon is a pioneer investor in the cannabis industry, and Jay-Z is a cultural and creative global force no matter the industry he is involved in.”
“I couldn’t think of a better group to be working with as we take this company to the next stage,” Sherman added. “This funding not only underscores the significant value that Flowhub provides to our customers, but also the maturation of the cannabis industry at large. We remain committed to developing innovative products that help our retail customers run better businesses.”
Flowhub processes in excess of $3 billion in cannabis transactions annually, providing more than 1,000 marijuana dispensaries a retail sales platform to serve their customers while maintaining compliance with strict regulations. The company will use the new round of funding to accelerate its expansion into emerging cannabis markets while developing new products for its expanding line of services.
Supporting Cannabis Social Equity
The company also plans to use the new funding to support and grow its social equity program, which was launched by Flowhub in June to invest in communities adversely impacted by the War on Drugs.
Through the program, eligible social equity cannabis business owners can receive Flowhub’s POS retail management and …
Author: A.J. Herrington / High Times