Cannabis point-of-sale platform Flowhub introduced on Tuesday the closing of a $19 million spherical of strategic funding, together with vital participation from enterprise capital companies Headline and Poseiden in addition to a private funding from entrepreneur and hip-hop billionaire Shawn “Jay-Z” Carter.
The new spherical of funding for Flowhub brings the entire quantity of capital raised for the corporate to $50 million with a valuation of $200 million, in accordance with an announcement from the hashish dispensary cost 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 extra of $three billion in hashish transactions yearly, offering greater than 1,000 marijuana dispensaries a retail gross sales platform to serve their prospects whereas sustaining compliance with strict rules. The firm will use the brand new spherical of funding to speed up its enlargement into rising hashish markets whereas growing new merchandise for its increasing line of companies.
Supporting Cannabis Social Equity
The firm additionally plans to make use of the brand new funding to help and develop its social fairness program, which was launched by Flowhub in June to take a position in communities adversely impacted by the War on Drugs.
Through this system, eligible social fairness hashish enterprise house owners can obtain Flowhub’s POS retail administration and compliance software program for under $4.20 per 12 months, which represents a discount of 99.97 % over common pricing. The low cost is out there for as much as three years on the social fairness proprietor’s first hashish dispensary enterprise location.
The Flowhub social fairness program additionally supplies taking part hashish retailers with the corporate’s Stash stock administration and Greet buyer check-in cell apps, in addition to the View cell analytics app and free implementation of the expertise.
To date, Flowhub has awarded greater than $1 million value of software program merchandise to eligible hashish entrepreneurs taking part in this system. More details about the Flowhub hashish social fairness program is out there online.
Software Allows Debit Transactions at Cannabis Dispensaries
Because of the continued illegality of hashish on the federal stage, most banks, bank card firms and different monetary establishments don’t provide conventional banking companies to hashish companies, even these working legally below state legislation. As a end result, most dispensaries are compelled to conduct transactions with their prospects and suppliers through money.
“We’re still a cash industry, and it’s 2021,” Sherman told Forbes. “It’s hard to believe when we barely have cards in our pocket anymore with Apple Pay.”
Flowhub’s POS software program addresses the money subject by permitting prospects to make use of their debit playing cards to make gross sales transactions at hashish dispensaries. But as an alternative of being processed as a debit card sale, the transaction is technically an ATM withdrawal.
“It’s not really debit, but it feels like it,” Sherman stated.
Jay-Z and Cannabis
Jay-Z’s stake in Flowhub isn’t his first foray into the hashish business. In 2019, he grew to become the model strategist for Caliva, the place he developed his signature high-end hashish model Monogram. The following 12 months, Caliva, Monogram and Left Coast Ventures had been acquired by way of a SPAC deal that produced the Parent Company, the place Jay-Z heads the social fairness enterprise fund.
“When Jay says, ‘I’m not a businessman, I’m a business, man,’ it’s true,” stated Sherman, recalling a pattern of Jay-Z’s well-known lyrics. “He’s got incredible business acumen—he really knows how to surround himself with brilliant people and build great companies.”