Jay-Z is expanding his involvement with the cannabis industry.
The hip hop mogul, who launched his very own cannabis line last year, has invested in the cannabis retail software company, Flowhub. Hov joined venture firms Headline and Poseidon in donating $19 million to the Denver based tech company, which helps dispensaries by providing compliance, point of sale, inventory tracking and business intelligence solutions.
The company, which is valued at $200 million, plans to use the extra money to accelerate expansion into emerging markets, while further developing its products and growing its social equity program. Flowhub CEO Kyle Sherman spoke highly of his new investor, Jay-Z, in a recent interview with Forbes, saying:
“When Jay says, ‘I’m not a businessman, I’m a business, man,’ it’s true. He’s got incredible business acumen—he really knows how to surround himself with brilliant people and build great companies.”
Flowhub, founded in 2015, processes more than $3 billion annual sales for more than 1,000 businesses across 14 states. Sherman said in a statement:
“We are thrilled to announce this capital raise. Headline is an incredible Silicon Valley-based venture capital firm, Poseidon is a pioneer investor in the cannabis industry and Jay-Z is a cultural and creative global force no matter the industry he is involved in. 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.”
The news of Hov's investment comes just one year after the star launched Monogram, a partnership with California cannabis company Caliva.
Congrats to Jay-Z and Flowhub on the money moves.