JAY-Z is continuing to make his mark in the marijuana industry, reportedly investing $19 million in the cannabis payment company Flowhub in a joint venture with Headline and Poseidon. According to Forbes, the $200 million-valued and Denver-based Flowhub helps cannabis dispensaries process payments.
With Hov’s investment, the company is looking to expand into other markets, further develop its products and grow its social equity program.
“When JAY says, ‘I’m not a businessman, I’m a business, man,’ it’s true,” Flowhub Founder and CEO Kyle Sherman told Forbes. “He’s got incredible business acumen — he really knows how to surround himself with brilliant people and build great companies.”
In a press statement, Sherman added, “We are thrilled to announce this capital raise. Headline is an incredible Silicon Valley-based venture capital firm, Poseidon is a pioneer investor in the cannabis industry and JAY-Z is a cultural and creative global force no matter the industry he is involved in.”
“I couldn’t think of a better group to be working with as we take this company to the next stage,” he continued. “This funding not only underscores the significant value that Flowhub provides to our customers, but also the maturation of the cannabis industry at large. We remain committed to developing innovative products that help our retail customers run better businesses.”
JAY-Z’s investment follows his 2019 partnership with Caliva, through which he launched his own cannabis brand MONOGRAM last year. The hip hop mogul also serves as Caliva’s chief brand strategist. Hov’s investments in the marijuana industry have often included social equity programs. Earlier this year, MONOGRAM launched a national drug policy awareness campaign, which educated users about the disproportionate effects of federal drug laws.