JAY-Z invested $19 million in Flowhub, which is valued at $200 million, helps cannabis dispensaries process payments and has raised a total of $50 million.
The company plans to accelerate expansion into emerging markets, further develop products and grow its social equity program.
“When Jay says, ‘I’m not a businessman, I’m a business, man,’ it’s true,” Flowhub founder and CEO Kyle Sherman said. “He’s got incredible business acumen—he really knows how to surround himself with brilliant people and build great companies.”
With 60 years of industry experience, Flowhub processes more than $3 billion annual sales.
“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."
JAY-Z’s investment in Flowhub follows his partnership with Caliva, becoming the chief brand strategist.
“Anything I do, I want to do correctly and at the highest level,” he said. “With all the potential in the cannabis industry, Caliva’s expertise and ethos make them the best partners for this endeavor. We want to create something amazing, have fun in the process, do good and bring people along the way.”