Cannabis point-of-sale platform Flowhub declared on Tuesday the closing of a $19 million round of strategic funding, which includes considerable participation from undertaking capital corporations Headline and Poseiden as nicely as a particular expense from entrepreneur and hip-hop billionaire Shawn “Jay-Z” Carter.
The new spherical of funding for Flowhub delivers the overall amount of money of funds raised for the company to $50 million with a valuation of $200 million, according to a assertion from the cannabis dispensary payment transactions processor.
“We are thrilled to announce this funds elevate,” claimed Kyle Sherman, founder and CEO of Flowhub. “Headline is an incredible, Silicon Valley-dependent venture money company, Poseidon is a pioneer trader in the cannabis field, and Jay-Z is a cultural and resourceful global force no make any difference the marketplace he is involved in.”
“I could not assume of a better team to be doing the job with as we get this business to the next phase,” Sherman added. “This funding not only underscores the sizeable value that Flowhub presents to our prospects, but also the maturation of the cannabis marketplace at huge. We keep on being fully commited to acquiring impressive goods that assistance our retail shoppers operate superior enterprises.”
Flowhub processes in surplus of $3 billion in cannabis transactions every year, delivering a lot more than 1,000 marijuana dispensaries a retail profits system to provide their clients whilst protecting compliance with strict laws. The enterprise will use the new spherical of funding to speed up its expansion into rising cannabis markets though creating new products for its growing line of expert services.
Supporting Cannabis Social Equity
The company also plans to use the new funding to help and expand its social fairness program, which was released by Flowhub in June to spend in communities adversely impacted by the War on Drugs.
By way of the application, eligible social equity cannabis organization homeowners can receive Flowhub’s POS retail management and compliance program for only $4.20 per yr, which represents a reduction of 99.97 percent over standard pricing. The discounted is offered for up to a few yrs at the social equity owner’s very first cannabis dispensary business enterprise locale.
The Flowhub social fairness plan also delivers participating cannabis vendors with the company’s Stash inventory administration and Greet purchaser examine-in cellular apps, as very well as the Perspective cell analytics application and absolutely free implementation of the technological innovation.
To date, Flowhub has awarded extra than $1 million well worth of computer software merchandise to eligible cannabis business owners participating in the system. More details about the Flowhub cannabis social equity application is obtainable on the web.
Software package Lets Debit Transactions at Cannabis Dispensaries
Since of the continued illegality of cannabis at the federal stage, most banking companies, credit rating card companies and other financial institutions do not present conventional banking services to cannabis businesses, even people operating lawfully under point out regulation. As a outcome, most dispensaries are compelled to conduct transactions with their customers and suppliers by using income.
“We’re even now a hard cash industry, and it is 2021,” Sherman advised Forbes. “It’s difficult to imagine when we hardly have playing cards in our pocket any more with Apple Spend.”
Flowhub’s POS program addresses the income concern by making it possible for customers to use their debit cards to make product sales transactions at cannabis dispensaries. But as a substitute of currently being processed as a debit card sale, the transaction is technically an ATM withdrawal.
“It’s not seriously debit, but it feels like it,” Sherman claimed.
Jay-Z and Cannabis
Jay-Z’s stake in Flowhub isn’t his initially foray into the cannabis industry. In 2019, he grew to become the brand strategist for Caliva, in which he developed his signature significant-conclusion cannabis model Monogram. The adhering to calendar year, Caliva, Monogram and Remaining Coast Ventures had been acquired by a SPAC offer that developed the Father or mother Enterprise, in which Jay-Z heads the social equity enterprise fund.
“When Jay states, ‘I’m not a businessman, I’m a business, guy,’ it is true,” explained Sherman, recalling a sample of Jay-Z’s perfectly-recognized lyrics. “He’s bought amazing small business acumen—he definitely knows how to surround himself with outstanding people today and establish terrific providers.”