Kraft Heinz (NASDAQ: KHC) has produced its initial foray into the cannabis space by major a $23 million investment in marijuana technologies get started-up Flowhub.
Denver-primarily based Flowhub gives software program 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 businesses with transformative prospective.
Kraft Heinz, the world’s fifth biggest meals corporation, invested $100 million in Chicago-primarily based Evolv Ventures and brought in venture investor Bill Pescatello to lead the fund. CBD goods are firmly on its radar.
The $23 million investment is one particular 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 market.
“With this investment, we will continue to automate the cannabis provide chain, retail and reporting processes and bring to market place technologies options that are not only shaping the cannabis retail small business, 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 right after increasing its consumer base in 11 markets. It operates with brands like Cookies, Dr. Greenthumb’s, Green Dragon, Nectar, and Starbuds.
The investors praised its revolutionary cloud platform, which gives cannabis retailers a tailored practical experience and covers ID verification, verify-in, queue management, back of property, and a lot of additional 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 item innovation, employ new employees, and expand its ecosystem.