JAY-Z is continuing his moves in the marijuana industry by investing $19 million in the payment company Flowhub, together with venture firms Headline and Poseidon.
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Valued at $200 million, Denver-based Flowhub helps cannabis dispensaries process payments and has raised a total of $50 million to date. With the extra money, the company plans to accelerate expansion into emerging markets, while further developing its products and growing 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 told Forbes. “He’s got incredible business acumen—he really knows how to surround himself with brilliant people and build great companies.”
Founded in 2015 with over 60 years of industry experience, Flowhub processes more than $3 billion annual sales for more than 1,000 businesses across 14 states.
In a press release Sherman said, “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.
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“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.”
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JAY-Z’s investment in Flowhub follows his partnership with Caliva in 2019, becoming the marijuana company’s chief brand strategist.
“Anything I do, I want to do correctly and at the highest level,” he said at the time. “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.”
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Through Caliva, Hov launched his own luxury cannabis brand MONOGRAM in October 2020.
