Green Check Verified raises $6M for cannabis banking platform

Cannabis banking startup Green Check Verified raised a $6 million Series A round from fintech investor Mendon Venture Partners, the company tells Axios exclusively.

Why it matters: More banks are growing comfortable with serving the legal cannabis industry,

Yes, but: Specialized tools are required to meet compliance and regulatory requirements of state and federal agencies.

How it works: Green Check facilitates financial institutions' ability to provide banking to legal cannabis businesses by taking care of compliance, reporting and auditing requirements.

• Its platform includes a rules engine to analyze sales and inventory data and tools to help them keep up with FinCEN reporting.
• That enables cannabis businesses to access the same kind of online banking, payment processing and bill pay services other small businesses take for granted.

By the numbers: Green Check was founded in 2017 and serves more than 4,000 cannabis businesses and has partnerships with more than 130 financial institutions.

Of note: The funding comes on the heels of Green Check acquiring PayQwick, which provided payments and lending services to underbanked cannabis businesses.

Between the lines: Dan Goldfarb, the founder of lead investor Mendon Venture Partners said this is Mendon's first investment in a startup serving the cannabis industry.