As cannabis dispensaries flourish across the country alongside the push to legalize medicinal and recreational marijuana use, demand for tools to manage the specificities of the weed retail business continues to increase.
Looking to address that need, Flowhub, a cannabis retail management software vendor, has raised $23 million from a consortium of investors including e.ventures, Evolv Ventures (the Kraft Heinz-backed venture capital fund) and Poseidon.
The legal cannabis market is expected to top $66 billion over the next five years, according to estimates from Grand View Research, and entrepreneurs looking to get into the highly regulated industry are flocking to Flowhub’s suite of dispensary management services.
Not only does the company’s software address compliance concerns, according to chief executive officer Kyle Sherman, but it also integrates with companies like Dutchie for online ordering to facilitate in-store purchases and adds integrations with LeafBuyer and Leafly to provide more information to potential retailers.
The company also updated its software to include the “Stash” app, a mobile inventory management system, and a cashier app that integrates with iPads or other tablets to improve point-of-sale capabilities.
For investors like Emily Paxhia, a managing director at Poseidon, the opportunity to back a company helping to automate compliance in the regulated marijuana industry was too tempting to pass up.