EatStreet Secures Capital as Competitors Race to IPOs
EatStreet, the online and mobile food-ordering service in more than 75 U.S. cities, secured $6 million in Series B funding with participation from Cornerstone Opportunity Partners, Independence Equity, Great Oaks Venture Capital, CSA Partners, Silicon Valley Bank, and angel investors. EatStreet will use the new funding to expand into additional markets, double its workforce, and remain at the vanguard of technological development.
EatStreet’s news comes in the wake of the IPOs by competitors GrubHub and JustEat.
“We certainly respect their success, especially as it has helped create excitement and validate our industry," says Matt Howard, CEO and co-founder of EatStreet. "That said, our opportunity for growth is still vast, and this round of funding coupled with our recent results proves there are plenty of restaurants and hungry customers still looking for a great online-ordering solution.”
Since its inception in 2010, EatStreet has recorded an average annual sales growth of 300 percent, a rate that will significantly accelerate with the new capital investments. EatStreet added more than 3,000 restaurants in the last three months alone, putting the company on pace to provide service for more than 15,000 restaurants in upwards of 150 cities by the end of the year.
In support of this growth, part of the $6 million Series B investment funding will go toward enhancing the customer ordering experience.
“We’ve challenged ourselves with a very aggressive product roadmap, placing a strong emphasis on mobile," Howard says. "To start, our iPhone and Android apps, as well as our mobile website, are all getting revamped."
To accomplish its goals, EatStreet has doubled its development team, which now includes talented engineers from both Facebook and Google.
“Since day one, EatStreet has continuously evolved," Howard says. "We’re also a marketing engine that drives local commerce by connecting restaurants with hungry customers in exciting new ways. This investment will empower us to push more boundaries and tackle more challenges. Specifically, some strategic partnerships we’re finalizing that will help us unlock new avenues for growth and customer acquisition.”