Flowhub, a retail point-of-sale platform for cannabis dispensaries, announced on Tuesday the closing of $19 million in strategic funding, which brings the total amount of capital raised by the firm to nearly $50 million and a valuation of over $200 million. The financing was led by venture firms Headline and Poseidon, including a personal investment from Shawn “Jay-Z” Carter.
In a press release, Kyle Sherman, founder and CEO of Flowhub, praised Headline, Poseidon, and Carter.
“I couldn’t think of a better group to be working with as we take this company to the next stage. 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.”—Sherman in a statement
Flowhub processes more than $3 billion in cannabis sales annually and is used by more than 1,000 dispensaries. The company said the additional funding will help accelerate its expansion into emerging markets, further develop its product line and grow its social equity program.
Flowhub’s social equity program, which was launched in June, invests in cannabis business owners who have been adversely impacted by the War on Drugs. The program offers eligible social equity business owners Flowhub’s POS software discounted at $4.20 for up to three years, the mobile Stash and Greet apps, the View app, and free implementation, the company said in the release. To date, Flowhub has awarded more than $1 million worth of software products to eligible cannabis entrepreneurs via the social equity program.
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