Flowhub Secures $23 Million Series A Funding to Enhance Cannabis Retail Management Software

VCBeat (WeChat ID: vcbeat) learned from foreign media that on October 16, 2019, Flowhub, a U.S. cannabis retail software provider, announced the completion of a $23 million Series A financing round. This represents one of the largest Series A funding rounds in the cannabis technology industry to date. The round was led by e.ventures, with participation from investors including 3Evolv Ventures and Poseidon.

According to estimates by Grand View Research, the legal cannabis market is poised to surpass $66 billion over the next five years. As cannabis dispensaries flourish across the United States, driven by the legalization of marijuana for both medical and adult use, demand for retail management tools in the cannabis industry continues to grow. To maintain lawful and compliant operations, these companies need to partner with platforms like Flowhub to help them scale their operations effectively, meeting consumer demand while adapting to evolving state regulations.

Flowhub CEO Kyle Sherman stated that the company’s software not only addresses compliance issues in the cannabis market but also integrates features such as pre-ordering and diversified information services through partnerships with companies like Dutchie, LeafBuyer, and Leafly.

He further stated, “We are witnessing the end of cannabis prohibition, with Flowhub at the forefront of this movement. Every legal transaction processed through the Flowhub retail platform represents a positive step forward. We are committed to helping our customers build thriving cannabis businesses. With this investment, we will continue to automate cannabis supply chain, retail, and reporting processes, and bring to market technology solutions that not only shape cannabis retail operations but also advance the legalization and destigmatization of cannabis.”

In 2018, Flowhub achieved significant growth, with revenue increasing by 200% and its customer base doubling across 11 home-use brand markets, including Cookies, Greenthumb’s, Green Dragon, Nectar, and Starbuds. In 2019, Flowhub’s workforce expanded by 50%.

Jett Fein, Partner at e.ventures, stated, “We are delighted to join Flowhub at this pivotal moment in its development, as demand for legal cannabis products continues to grow across the United States. Flowhub is dedicated to leveraging technology to drive the advancement of the cannabis industry and has built a cloud platform featuring a suite of applications. In this heavily regulated sector, the platform delivers an exceptional service experience for dispensaries. We support their mission and look forward to their success.”

Following this announcement, Flowhub has introduced its first major platform enhancements, making it easier for users to manage and operate their pharmacies. These improvements include: Stash, the industry’s first mobile inventory management solution designed to maximize sales volume and accuracy; Cashier, a point-of-sale application compatible with iPad that supports front-end cashiers; and the Specials engine, which manages discounts across all products and integrates with partner Dutchie to enable pre-ordering capabilities, thereby streamlining the in-store pickup process.

Flowhub, headquartered in Denver, USA, is a leading cannabis retail software development company.

e.ventures, founded in 1998 and headquartered in California, USA, is a global venture capital platform primarily investing in the early-stage mobile internet consumer market sector.

Evolv Ventures, established in 2018 and headquartered in Illinois, USA, is a venture capital fund focused on investing in the food technology sector.

Poseidon, established in 2017 and headquartered in Liverpool, UK, is a non-profit foundation.

(Compiled by He Li)