Provider of cannabis banking services Shield Compliance announced Tuesday a $5 million Series A funding round led by Copia Investments, which helped the company’s post-money valuation reach $20 million.
The new funds and those from prior funding will be used to reinforce the development of the Shield Data Hub, which is the main feature of the company’s cannabis banking platform that aggregates financial institutions’ transaction data and demographic records, the company said.
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Shield Compliance also reported about entering new agreements to bring its compliance management software to financial institutions serving legal cannabis markets in Michigan, Massachusetts, Colorado, Washington, Ohio and Illinois.
With these new agreements and its collaboration with MRB payroll processor, the company now covers all states that have legalized cannabis sales.
“We are pleased to see the confidence Copia Investments and a growing set of customers across the country have in our product,” Noah Carey, founder and CEO of Shield Compliance, said in a statement. “It reflects our core belief that the cannabis industry must have access to banking services, and that our purpose-built solution meets the compliance requirements of this industry while enabling financial institutions to operate efficiently and effectively.”