Total amount raised
$962 Millions
Latest funding date
11/1/2020
Location
Toast has successfully raised significant funding over multiple rounds, attracting a diverse group of investors. The company offers a comprehensive point-of-sale and restaurant management platform tailored for the food service and hospitality industry.
Keep reading to explore the intricacies of Toast's fundraising journey and the investors backing this innovative platform.
What Is Toast?
Founded in December 2011, Toast is a Boston-based company specializing in point-of-sale and restaurant management solutions. The company was established by Aman Narang, Jonathan Grimm, and Steve Fredette.
Toast offers an all-in-one platform designed to streamline operations for businesses in the food service and hospitality industry. Their services include tableside ordering, real-time reporting, online ordering, and labor management.
With a workforce of 1001-5000 employees, Toast continues to innovate and support restaurants in enhancing their operational efficiency and customer experience.
How Much Funding Has Toast Raised?
- Series A
- Amount Raised: $3M
- Date: July 2015
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop and launch their initial product offerings.
- Debt Financing
- Amount Raised: $3M
- Date: August 2015
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support operational expenses and early growth.
- Series B
- Amount Raised: $30M
- Date: January 2016
- Lead Investors: Bessemer Venture Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand their market reach and enhance product features.
- Series C
- Amount Raised: $101M
- Date: July 2017
- Lead Investors: Generation Investment Management, Lead Edge Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and invest in new technology.
- Series D
- Amount Raised: $115M
- Date: July 2018
- Lead Investors: T. Rowe Price
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and expand their product suite.
- Series E
- Amount Raised: $250M
- Date: March 2019
- Lead Investors: TCV, Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance their technology and expand into new markets.
- Series F
- Amount Raised: $400M
- Date: February 2020
- Lead Investors: Bessemer Venture Partners, Greenoaks, Tiger Global Management, TPG
- Valuation at Round: $4.9 billion
- Motivation Behind the Round: To support rapid growth and product development.
- Secondary Market
- Amount Raised: $60M
- Date: November 2020
- Lead Investors: 12 West Capital
- Valuation at Round: $8 billion
- Motivation Behind the Round: To provide liquidity to employees and former employees.
Total Amount Raised: $962M. Current Valuation: $8 billion.
Key Investors
- Bessemer Venture Partners
- Details: Bessemer Venture Partners is a global venture capital firm with a history dating back to 1911. They have invested in over 200 companies, many of which have gone public.
- Investment Focus Areas: Cloud computing, cybersecurity, healthcare.
- Notable Investments: LinkedIn, Shopify, Pinterest.
- Tiger Global Management
- Details: Tiger Global Management is an investment firm that focuses on public and private companies in the global Internet, software, consumer, and financial technology industries. Founded in 2001, it has a strong track record of successful investments.
- Investment Focus Areas: Internet, software, consumer, financial technology.
- Notable Investments: Facebook, Spotify, Stripe.
- Generation Investment Management
- Details: Generation Investment Management is a sustainable investment firm founded in 2004 by former U.S. Vice President Al Gore and David Blood. The firm focuses on long-term investments that promote sustainability.
- Investment Focus Areas: Sustainability, renewable energy, healthcare.
- Notable Investments: Asana, DocuSign, Shopify.
- TCV
- Details: TCV, or Technology Crossover Ventures, is a private equity and venture capital firm that invests in technology companies. Founded in 1995, TCV has backed over 350 companies.
- Investment Focus Areas: Software, internet, financial technology.
- Notable Investments: Netflix, Airbnb, Peloton.
- T. Rowe Price
- Details: T. Rowe Price is a global investment management firm founded in 1937. The firm offers a broad range of mutual funds, subadvisory services, and separate account management for individual and institutional investors.
- Investment Focus Areas: Mutual funds, retirement plans, institutional investments.
- Notable Investments: Amazon, Google, Microsoft.
What's Next for Toast?
As Toast continues to navigate the evolving landscape of the restaurant industry, the shift towards takeout and delivery presents a significant opportunity. With the National Restaurant Association reporting that nearly 70% of operators have added curbside takeout, Toast's software solutions for online ordering and marketing are more relevant than ever. This growing demand could propel the company to new heights, potentially leading to an IPO in the near future.
However, the path forward is not without challenges. The impact of COVID-19 on the restaurant industry has been profound, and Toast must adapt to rapid changes in market conditions and consumer behavior. Rehiring and managing a workforce after significant layoffs will also be a critical hurdle. Despite these obstacles, investor interest remains strong, with bids on the secondary market exceeding the $8 billion valuation, indicating a promising future for further fundraising and expansion.
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