US-based online checkout system developer Fast revealed on Tuesday it is shutting down just over a year after raising over $100m from investors including digital payment technology provider Stripe.
Founded in 2019, Fast is the creator of a frictionless checkout system which allowed users to pay for items with one click across a range of websites and apps. However, its burn rate was reportedly extremely quick, and the news came days after it revealed its 2021 revenue only came to approximately $600,000.
The company had attempted to raise funding at a $1bn valuation this year but had no luck, even once it had halved that valuation, according to The Information, meaning it had no choice but to shut its doors. The product will be discontinued from April 15.
Stripe led Fast’s $20m series A round in early 2020, investing alongside venture capital firms Index Ventures and Susa Ventures. The corporate returned in January 2021 to co-lead a $102m series B round with Addition at a $500m valuation that included Index, Susa, Sugar Capital and Jaren Glover, taking its total funding past $124m.
Fast’s rapid rise can partly be attributed to increased e-commerce traffic over the course of the covid-19 pandemic, but its fall was due to a failure to maintain a reliable revenue stream combined with a cooling VC market, and it may well be the first in a string of recent unicorns to shutter or downsize.
Domm Holland, Fast’s co-founder and CEO, said in a statement: “While you will no longer see the Fast button at checkout, we are incredibly proud of the team we assembled and our work to democratise commerce through Fast’s one-click checkout experience.
“Sometimes trailblazers don’t make it all the way to the mountain top. But even in those situations, they pave a way that all others will follow. Fast has done that with bringing one-click and headless checkout into the mainstream.
“Buying online has been forever changed by the incredible team at Fast. The dedication, brilliance and spirit of this remarkable team is unparalleled and will forever be the legacy of Fast.
