Hip-hop mogul Jay-Z invests in cannabis retail platform Flowhub |

Flowhub cannabis point-of-sale platform announced Tuesday the completion of a $ 19 million strategic financing round, including a significant stake from venture capital firms Headline and Poseiden and a personal investment from the entrepreneur and hip-hop billionaire Shawn “Jay-Z” Carter.

The new round of funding for Flowhub brings the total amount of capital raised for the company to $ 50 million at a valuation of $ 200 million, according to a statement from the cannabis pharmacy’s payment processor.

“We are very excited to announce this capital increase,” said Kyle Sherman, Founder and CEO of Flowhub. “Headline is an incredible Silicon Valley-based venture capital company, Poseidon is a pioneering investor in the cannabis industry, and Jay-Z is a cultural and creative global force no matter what industry he’s in.”

“I couldn’t think of a better group to work with as we take this company to the next level,” added Sherman. “This funding underscores not only the significant value that Flowhub brings to our customers, but also the maturation of the cannabis industry as a whole. We continue to strive to develop innovative products that help our retail customers do better business. “

Flowhub processes over $ 3 billion worth of cannabis transactions annually and provides a retail sales platform to more than 1,000 marijuana dispensaries to serve their customers while complying with strict regulations. The company will use the new funding round to accelerate its expansion into emerging cannabis markets while developing new products for its expanding service offering.

Supporting Cannabis Social Justice

The company also plans to use the new funding to support and expand its social justice program, launched by Flowhub in June, to invest in communities adversely affected by the war on drugs.

Through the program, eligible social equity cannabis business owners can get Flowhub POS retail management and compliance software for just $ 4.20 per year, a 99.97 percent reduction from regular price. The discount is available for up to three years at the social equity owner’s first business location of the cannabis pharmacy.

The Flowhub social equity program also offers participating cannabis retailers the company’s Stash Inventory Management and Greet Customer Check-in mobile apps, as well as the View Mobile Analytics app and free implementation of the technology.

To date, Flowhub has distributed more than $ 1 million worth of software products to eligible cannabis entrepreneurs participating in the program. More information about the FlowHUB Cannabis Social Equity program is available online.

Software Enables debit transactions in cannabis distribution

Due to the continued illegality of cannabis at the federal level, most banks, credit card companies, and other financial institutions do not offer traditional banking services to cannabis companies, even if they operate legally under state law. As a result, most pharmacies are forced to transact with their customers and suppliers in cash.

“We’re still a cash industry and it’s 2021,” Sherman told Forbes. “It’s hard to believe when we hardly have any cards in our pockets with Apple Pay.”

Flowhub’s POS software addresses the cash problem by allowing customers to use their debit cards for sales transactions at cannabis dispensaries. But instead of being processed as a debit card sale, technically speaking it is a withdrawal from an ATM.

“It’s not actually a direct debit, but it feels like it,” said Sherman.

Jay-Z and cannabis

Jay-Z’s involvement in Flowhub isn’t his first foray into the cannabis industry. In 2019, he became a brand strategist for Caliva, where he developed his signature high-end cannabis brand, Monogram. The following year, Caliva, Monogram and Left Coast Ventures were acquired through a SPAC deal that spawned the parent company where Jay-Z runs the social equity venture fund.

“If Jay says, ‘I’m not a businessman, I’m a business man,’ then that’s true,” said Sherman, recalling a selection of Jay-Z’s well-known texts. “He’s got incredible business acumen – he really knows how to surround himself with brilliant people and build great companies.”