EatStreet Raises $2M From Cornerstone Opportunity Partners To Expand Its Ordering Platform For Restaurants
Cornerstone Opportunity Partners leads $2mm Series A funding round for Madison, Wisconsin based restaurant order management platform company EatStreet
NORTHBROOK, Ill., March 4, 2013-- Cornerstone Opportunity Partners, LLC an early stage investment fund affiliated with Cornerstone Angels, a membership-based investment network of high net-worth individuals and families, has announced it has led a $2 million Series A funding round for EatStreet. EatStreet offers an order management platform for restaurants and is based in Madison, WI. Independence Equity I, LP, Great Oaks VC, Gener8tor, existing investors, and numerous angel investors participated in the financing. Michael C. Gruber will join the Board of Directors as the representative for Series A investors.
The new capital will enable EatStreet’s expansion into new markets. Since its launch in 2010, EatStreet has brought its online ordering platform to over 900 restaurants in 20 markets across the country.
EatStreet’s order management platform offers restaurants web and mobile ordering at no upfront cost. EatStreet’s system incorporates its ordering website EatStreet, custom-made apps and websites for restaurants, Facebook ordering, a rewards program, and a restaurant analytics platform. This robust platform drives an increase in transactions and enhances restaurants’ interactions with their customers.
According to Michael C. Gruber, Cornerstone Opportunity Partners’ CEO, “EatStreet has demonstrated its ability to build a system which helps to drive increased transactions and revenue to restaurant owners. They have developed a model that is highly scalable and which is a variable cost model, something which is extremely attractive to both existing and prospective customers. The simplicity and ease for EatStreet to be integrated with a restaurant’s existing operations, including menu updating is very compelling.”
The delivery and takeout industry in the United States receives $170 billion dollars in orders annually, with the majority of orders being placed offline. There are more than 575,000 restaurants in the United States alone, with the overwhelming majority having little to no online ordering capability. EatStreet offers a turnkey solution to restaurants and provides small, independent operators functionality normally available to only the largest operators. This includes sophisticated services such as hyper-local target marketing, order analytics, POS integration, and other capabilities of interest to the national restaurant chains.
EatStreet has demonstrated its ability to drive a significant ROI for restaurant owners by increasing orders, reducing internal operational burdens, and improving customer experience. “We have a strong platform and we are ready to use this investment to scale to new markets across the country,” says CEO and Co-Founder Matt Howard. “We are excited to attract our new investor base given the level of expertise and experience within their organizations. I look forward to their ongoing support to accelerate our growth.”
EatStreet is projected to sign over 1,000 restaurants this year and establish an additional 30 markets. Howard says the company is expanding to service larger corporate restaurant chains and will soon offer tablets to current partnered restaurants.
Cornerstone Opportunity Partners, LLC led the Series A financing, with co-investments by Independence Equity I, LP, Great Oaks Venture Capital, Gener8tor, and other highly successful executives involved as individual investors.
About Cornerstone Opportunity Partners, LLC
Cornerstone Opportunty Partners, LLC is an early stage fund that is affiliated with Cornerstone Angels. Cornerstone Angels is a private membership-based investment organization composed of successful executives, entrepreneurs, and investors who seek to provide financial capital and mentorship to early-stage companies. Through its strong relationships, Cornerstone Angels attracts in excess of 250 deals annually for investment consideration.
Cornerstone Angels meets on a monthly basis By Invitation Only and with its membership being available only to a select group of individuals and families for participation. For more information: http://www.cornerstoneangels.com
EatStreet, based in Madison, WI, provides a turnkey order management platform for restaurants with no upfront cost. The EatStreet platform provides online ordering through web and mobile applications, and provides many enhanced features such as analytics, rewards and corporate ordering. The company offers a digital food court while also being integrated directly into a restaurant’s website. For more information, visit: http://www.eatstreet.com
Downloadable Venture Capital Database