Cannabis issue-of-sale system Flowhub declared on Tuesday the closing of a $19 million spherical of strategic funding, which include major participation from undertaking funds firms Headline and Poseiden as nicely as a private expenditure from entrepreneur and hip-hop billionaire Shawn “Jay-Z” Carter.
The new spherical of funding for Flowhub delivers the full volume of money raised for the company to $50 million with a valuation of $200 million, in accordance to a assertion from the cannabis dispensary payment transactions processor.
“We are thrilled to announce this funds raise,” claimed Kyle Sherman, founder and CEO of Flowhub. “Headline is an incredible, Silicon Valley-based mostly enterprise capital agency, Poseidon is a pioneer trader in the hashish industry, and Jay-Z is a cultural and artistic world-wide pressure no make a difference the market he is associated in.”
“I could not believe of a improved team to be functioning with as we take this corporation to the next stage,” Sherman additional. “This funding not only underscores the important price that Flowhub delivers to our prospects, but also the maturation of the cannabis field at substantial. We keep on being committed to acquiring modern items that assist our retail buyers operate improved companies.”
Flowhub processes in extra of $3 billion in cannabis transactions yearly, offering additional than 1,000 marijuana dispensaries a retail gross sales system to serve their clients even though maintaining compliance with rigorous restrictions. The enterprise will use the new spherical of funding to speed up its enlargement into rising cannabis markets though establishing new goods for its expanding line of providers.
Supporting Hashish Social Equity
The enterprise also designs to use the new funding to support and grow its social equity software, which was released by Flowhub in June to make investments in communities adversely impacted by the War on Medicines.
Via the system, eligible social equity cannabis small business owners can get Flowhub’s POS retail management and compliance application for only $4.20 for every year, which represents a reduction of 99.97 per cent more than regular pricing. The discounted is offered for up to a few many years at the social equity owner’s initial hashish dispensary company locale.
The Flowhub social fairness method also provides taking part hashish suppliers with the company’s Stash inventory administration and Greet client check out-in cell apps, as properly as the Perspective mobile analytics application and absolutely free implementation of the technological know-how.
To day, Flowhub has awarded much more than $1 million worth of software program goods to qualified cannabis business owners participating in the software. More information and facts about the Flowhub cannabis social equity application is out there on-line.
Program Makes it possible for Debit Transactions at Hashish Dispensaries
Mainly because of the continued illegality of hashish at the federal degree, most banking institutions, credit rating card companies and other monetary establishments do not offer you classic banking solutions to hashish firms, even individuals working lawfully underneath point out regulation. As a final result, most dispensaries are compelled to conduct transactions with their shoppers and suppliers by using cash.
“We’re still a hard cash field, and it is 2021,” Sherman instructed Forbes. “It’s hard to believe when we scarcely have playing cards in our pocket any more with Apple Spend.”
Flowhub’s POS application addresses the income concern by allowing consumers to use their debit cards to make profits transactions at cannabis dispensaries. But in its place of getting processed as a debit card sale, the transaction is technically an ATM withdrawal.
“It’s not genuinely debit, but it feels like it,” Sherman said.
Jay-Z and Cannabis
Jay-Z’s stake in Flowhub isn’t his 1st foray into the cannabis industry. In 2019, he grew to become the brand strategist for Caliva, exactly where he designed his signature high-stop hashish model Monogram. The pursuing year, Caliva, Monogram and Still left Coast Ventures have been obtained as a result of a SPAC deal that produced the Guardian Company, wherever Jay-Z heads the social fairness venture fund.
“When Jay claims, ‘I’m not a businessman, I’m a small business, person,’ it’s real,” reported Sherman, recalling a sample of Jay-Z’s perfectly-recognized lyrics. “He’s obtained incredible business acumen—he genuinely knows how to encompass himself with outstanding people today and build wonderful corporations.”