Flowhub’s valuation now approaching $250 million following latest funding round.

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Denver-based payment processor Flowhub has raised nearly US$50 million ($62.1 million) since launching in 2015, including a personal investment from rapper turned cannabis entrepreneur, Shawn “Jay-Z” Carter.

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The most recent funding round attracted the attention of the iconic artist and upped the company’s valuation to more than US$200 million ($248 million).

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Fowhub intends to use the funding to expand into emerging markets, further develop its product line and grow its social equity program.

“Jay-Z is a cultural and creative global force no matter the industry he is involved in,” said Kyle Sherman, founder and CEO of Flowhub. “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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Flowhub’s software is used in more than 1,000 cannabis stores across the U.S. and is integrated with Weedmaps, Dutchie and Leafly, among other platforms. The company processes more than US$3 billion ($3.7 billion) in annual payments.

Flowhub’s social equity program was launched in June 2021 and invests in those who have been adversely impacted by the war on drugs. To date, the company has awarded more than US$1 million ($1.2 million) worth of software products to eligible cannabis entrepreneurs.

Social equity in cannabis has also been a focus for Jay-Z since he first entered the industry.

“Although we know we can’t fully redeem the injustices created by the ‘war on drugs’, we can help shape a brighter and inclusive future,” Jay-Z said last year, after being named the chief visionary officer of The Parent Company Holding Corp. “The brands we build will pave a new path forward for a legacy rooted in equity, access and justice. We’re creating something people can trust and we’re investing in our future, our people, and our communities.”

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In his role with TPCO, Jay-Z oversees social equity ventures and assists with brand strategy. The company launched with an initial target of US$10 million ($12.4 million) in social equity funding and a goal of investing at least two per cent of its net income in minority-owned and Black-owned cannabis businesses. Additional initiatives will focus on bail reform and expungement clinics, and job training and placement.

Recently, Jay-Z has been advocating for the release of Valon Veailes, a 55-year-old man sentenced to 20 years in prison on a cannabis conspiracy charge. Last year, Jay-Z launched a lawsuit against the Mississippi Department of Corrections after repeated violence at Parchman prison claimed the lives of 13 inmates over a period of a month and a half.

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SOURCE: https://www.thegrowthop.com/cannabis-news/cannabis-payment-processor-attracts-investment-from-jay-z