Denver-primarily based Flowhub offers software program for cannabis retailers covering inventory tracking, point of sale, compliance, and much more. It caught the eye of Evolv Ventures, the incubator and venture capital subsidiary established by Kraft Heinz to invest in revolutionary, emerging tech organizations with transformative prospective.
Kraft Heinz, the world’s fifth biggest meals enterprise, invested $100 million in Chicago-primarily based Evolv Ventures and brought in venture investor Bill Pescatello to lead the fund. CBD items are firmly on its radar.
The $23 million investment is a single of the biggest Series A rounds for a cannabis tech provider. Evolv Ventures led the round along with e.ventures and Poseidon, even though 9Yards Capital and Iqram Magdon-Ismail also contributed.
It is a roundabout entry into the cannabis sector for Kraft Heinz, which reported annual sales of $26.two billion in 2018, but it is intriguing to see it dipping a tentative toe into the market.
“With this investment, we will continue to automate the cannabis provide chain, retail and reporting processes and bring to industry technologies options that are not only shaping the cannabis retail organization, but also driving forward the future of legalization and de-stigmatization,” stated Flowhub founder and chief executive Kyle Sherman.
The firm has doubled income more than the previous year immediately after expanding its buyer base in 11 markets. It performs with brands like Cookies, Dr. Greenthumb’s, Green Dragon, Nectar, and Starbuds.
The investors praised its revolutionary cloud platform, which provides cannabis retailers a tailored encounter and covers ID verification, verify-in, queue management, back of residence, and numerous much more functions. They also hailed its meticulous and strategic strategy to thriving in a sector rife with complicated compliance and regulation elements.
The $23 million financing round brings the firm’s total funding to $27 million, and it now plans to invest in solution innovation, employ new employees, and expand its ecosystem.