AAA Investors pay $115m tribute to Toast

Investors pay $115m tribute to Toast

Toast, a US-based point-of-sale technology developer backed by internet technology group Alphabet, raised $115m yesterday in a series D round led by funds and accounts advised by investment manager T. Rowe Price Associates.

Hedge fund manager Tiger Global Management also participated in the series D round, which valued Toast at $1.4bn, as did unnamed existing backers.

Founded in 2011, Toast has created a platform that integrates with third-party services, combining point-of-sale technology with front and back-of-house management and patron-facing functionality such as online ordering, loyalty schemes and gift cards.

The funding will go to accelerating research and development activities, with a particular focus on Toast’s mobile point-of-sale platform, Toast Go, in addition to self-ordering functionality and a customer feedback tool.

Toast closed a $101m funding round in July 2017 co-led by Generation Investment Management and Lead Edge Capital, with participation from Bessemer Venture Partners and undisclosed existing investors.

GV, the early-stage investment subsidiary of Alphabet, took part in a $30m round for the company in 2016 that was led by Bessemer and backed by unnamed angel investors.

Steve Pappa, the former CEO of business intelligence software producer Endeca, reportedly backed a $7m series A round for Toast, but further details have not been revealed. Toast’s co-founders worked at Endeca before forming the company.

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