SpotOn, a payments and software startup focused on small and medium-sized businesses (SMBs), announced this morning it has raised $50 million in Series B funding led by 01 Advisors–a newish VC firm founded by former Twitter execs.
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Existing backers Dragoneer Investment Group, Franklin Templeton and EPIQ Capital Group, also participated in the financing, which brings the company’s total raised since its early-2017 inception to $130 million. This round comes just nine months (to the day) since SpotOn raised $40 million in a round co-led by Dragoneer and Franklin Templeton.
San Francisco-based SpotOn is taking on the likes of Square in the payments space. But says it “goes way beyond” traditional payment processing and point-of-sale (POS) software. Its platform also gives SMBs the ability to run their businesses “from building a brand to taking payments and everything in-between.” It incorporates tools that include things such as custom website development, scheduling software, marketing, appointment scheduling, review management, analytics and digital loyalty.
To put it simply, according to SpotOn President RJ Horsley, SpotOn aims to give SMBs the ability to accept payments “coupled with meaningful, integrated software to meet their specific needs and operate more efficiently.”
“Unlike other offerings, we build our own product offerings and have straight-forward pricing coupled with face-to-face service,” Horsley added.
The company says its new funding follows a year in which it saw revenue increase “by over 150 percent.” Also, SpotOn doubled its employee count to 850 over the past year. So far in 2020, it’s added over 5,000 clients with a focus on the food and beverage industry. Horsley said the company expects to add 30,000 clients this year. Currently, SpotOn has “tens of thousands of clients,” and is more than doubling year over year, he added.
For 01 Advisors managing partner and co-founder (and former Twitter CEO) Dick Costolo, SpotOn is a rare company that can build both “great” products and “great” sales teams.
The company plans to use its new capital to invest in product development with an emphasis on targeting specific verticals. It’s especially focused on its restaurant solution, having recently tripled the development team working on improving upon that product.
SpotOn is currently “aggressively hiring.” Besides its San Francisco headquarters, the company has “expanding” product, technology and operations teams in Chicago, Detroit and Denver, as well as newly opened offices in Mexico City, Mexico, and Krakow, Poland.
It’s been a busy week for 01 Advisors. The firm also put money into New York City-based Electric, which provides enterprise-grade IT services to SMBs and has just raised a $14.5 million Series B round.
Blog Roll Illustration: Li-Anne Dias