Investing in companies that empower and impact growing markets is the business mindset of Shawn “Jay-Z” Carter. Jay Z’s investment firm is now in the payment processing business owing to the demand of legalized cannabis.
Understanding the real meaning of “cash is king,” Jay Z made another genius business move by investing in Flowhub. Flowhub is a flourishing tech giant which creates point-of-sale software. The company has raised nineteen million dollars during their initial round of funding.
Entering the payment processing business market reflects the unparalleled business mentality of Jay-Z. His investment is in conjunction with his ownership of the premium cannabis company Monogram.
FlowHub’s Mega Footprint
Valued at $200 Million, FlowHub’s footprint in the market increased substantially. In fact, Headline Capital and Poseidon Asset Management led this round of funding.
Having launched in 2015, Flowhub assists cannabis retailers in keeping their inventory and transaction records up to date and staying compliant with state laws governing cannabis.
Moreover, Flowhub processes over $3 billion worth of marijuana transactions every year on behalf of over 1,000 businesses across multiple states. Flowhub’s founder Kyle Sherman is a major player in the tech world.
The marijuana industry maintains federally illegal status. Therefore, large banks insured by the Federal Deposit Insurance Corporation, such as JPMorgan Chase and Wells Fargo, refuse to service marijuana companies.
Knowing that card types like Visa and MasterCard and payment processors such as PayPal and Square have to deal with the same issues. Most marijuana industry transactions, which reached $20 billion last year across 36 states that had legalized marijuana sales in some form, were cash transactions.
Considering the point-of-sale tools offered by Flowhub, they will help cannabis dispensaries deal with a constantly shifting cash flow landscape. With Flowhub’s software, customers can swipe their debit cards at checkout. However, the transaction is not a debit transaction at all; it is charged like a cash withdrawal from an ATM.
Poseidon Asset Management’s Emily Paxhia, co-founder and managing partner, said, “Flowhub is the Square of the cannabis space.”