Kraft Heinz has made its first move into the cannabis sector, as its Evolv Ventures venture capital arm has co-led a $23 million funding round in cannabis technology startup Flowhub.
Denver-headquartered Flowhub is a cannabis retail software company which delivers compliance, point of sale, inventory tracking and business intelligence data to cannabis dispensaries through a digital platform.
Evolv Ventures was established by Kraft Heinz last year to invest in emerging tech companies that are “transforming the food industry”, and this investment is the third venture made by Evolv and its first in the cannabis tech sector.
The overarching goal of the venture arm is to support Kraft Heinz’s efforts to keep on top of changing trends in the food and beverage industry, and CBD-infused products are gaining interest from consumers due to their perceived functional benefits.
The investment marked one of the largest Series A rounds undertaken in the cannabis tech industry, and was led by Evolv, e.ventures and Poseidon, with further contributions from 9Yards Capital and Iqram Magdon-Ismail, the co-founder and former CEO of Venmo.
Kyle Sherman, founder and CEO of Flowhub said: “What we are experiencing right now is an end to cannabis prohibition and Flowhub is on the front lines of this movement.
“Every legal transaction completed with the Flowhub retail platform is a positive step forward, and we are committed to helping our customers build thriving cannabis businesses.
“With this investment, we will continue to automate the cannabis supply chain, retail and reporting processes and bring to market technology solutions that are not only shaping the cannabis retail business, but also driving forward the future of legalization and de-stigmatization.”
© FoodBev Media Ltd 2019