Flowhub, a cannabis retail management software vendor, has raised $23 million in its bid to automate cannabis compliance.
A number of investors participated, including e.ventures, Evolv Ventures and Poseidon.
Despite the public market for cannabis being off by more than 40 percent, the legal cannabis industry is expected to rise above $66 billion over the next five years — and businesses need help in navigating the highly-regulated market. As Flowhub’s chief executive officer Kyle Sherman explained, the company’s suite of dispensary management services provides information about compliance concerns, while the software integrates with companies like Dutchie for online ordering, and LeafBuyer and Leafly to keep potential retailers informed.
In addition, the software has been updated to include the Stash app, a mobile inventory management system, as well as a cashier app that can provide better point-of-sale capabilities through the use of tablets.
“What we are experiencing right now is an end to cannabis prohibition, and Flowhub is on the front lines of this movement,” said Sherman in a statement, according to reports. “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. With this investment, we will continue to automate the cannabis supply chain, retail and reporting processes and bring to market technology solutions that are not only shaping the cannabis retail business, but also driving forward the future of legalization and de-stigmatization.”
“The compliance and regulation aspects make this a unique industry, and Flowhub is one of the leading cannabis tech companies that is taking a meticulous and strategic approach,” Emily Paxhia, a managing director at Poseidon, said in a statement. “We saw the potential for Flowhub’s technology and mission early on and we’re thrilled to continue to support them in delivering the cannabis retail experience of the future.”