Flowhub, a cannabis software technology platform, has announced that it has closed on a $19 million strategic raise to help it expand into emerging markets and grow a social equity program.
The funding round for the Denver company was led by venture firms Headline, based in Silicon Valley, and San Francisco-headquartered Poseidon Asset Management. It also had a personal investment from rapper and entertainment mogul Shawn “Jay-Z” Carter.
The $19 million increases Flowhub’s total capital raised to $50 million per the press release.
Under the Flowhub’s new program, social equity business owners will receive Flowhub’s point-of-sale software for $4.20 for up to three years as well as additional products and services.
The company had raised $23 million in a Series A funding backed by numerous investors in 2019. This included existing stakeholders Phyto Partners, based in Boca Raton, Florida, and Poseidon.
Flowhub, which was founded by Kyle Sherman in 2015, helps dispensaries process transactions, track inventory and stay compliant with state cannabis laws. Each year, the company processes more than $3 billion in marijuana transactions for more than 1,000 businesses across 14 states.
“When Jay says, ‘I’m not a businessman, I’m a business, man,’ it’s true,” says Sherman to Forbes. “He’s got incredible business acumen—he really knows how to surround himself with brilliant people and build great companies.”