Flowhub, a US-based provider of cannabis dispensary management software received $23m on Tuesday in a series A round co-led by Evolv Ventures, a vehicle capital firm backed by food producer Kraft Heinz.
The round was co-led by venture capital fund E.Ventures and cannabis-focused hedge fund Poseidon Asset Management, and included VC firm 9Yards Capital, angel investors David Stern and Iqram Magdon-Ismail and undisclosed additional participants.
Founded in 2015, Flowhub has created a business management platform that helps marijuana vendors automate regulatory compliance reporting, analyse sales trends and monitor the provenance of their products.
The software is pitched to satisfy cannabis dispensaries targeting growth in the US states where its usage is no longer a criminal offence.
The company had secured $3.3m in an early 2017 round co-led by Green Lion Partners and Phyto Partners, having raised $500,000 from investors including cannabis industry technology developer MassRoots and Poseidon Asset Management in 2015.
Kyle Sherman, Flowhub’s founder and chief executive, said: “What we are experiencing right now is an end to cannabis prohibition and Flowhub is on the front lines of this movement.
“Every legal transaction completed with the Flowhub retail platform is a positive step forward, and we are committed to helping our customers build thriving cannabis businesses.”