Denver-primarily based Flowhub supplies computer software for cannabis retailers covering inventory tracking, point of sale, compliance, and additional. It caught the eye of Evolv Ventures, the incubator and venture capital subsidiary established by Kraft Heinz to invest in revolutionary, emerging tech providers 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 solutions are firmly on its radar.
The $23 million investment is 1 of the biggest Series A rounds for a cannabis tech provider. Evolv Ventures led the round along with e.ventures and Poseidon, whilst 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 exciting to see it dipping a tentative toe into the business.
“With this investment, we will continue to automate the cannabis provide chain, retail and reporting processes and bring to marketplace technologies options that are not only shaping the cannabis retail organization, but also driving forward the future of legalization and de-stigmatization,” mentioned Flowhub founder and chief executive Kyle Sherman.
The firm has doubled income more than the previous year right after increasing its client 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 delivers cannabis retailers a tailored encounter and covers ID verification, verify-in, queue management, back of home, and several additional functions. They also hailed its meticulous and strategic method 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 item innovation, employ new employees, and expand its ecosystem.