Silicon Valley fintech startup SpotOn joins the unicorn club at $1.875 billion valuation after raising $125M in funding led by Andreessen Horowitz
For over three years now, we’ve featured thousands of startups around the world. For some reason, SpotOn slipped under our radar. SpotOn is a San Francisco-based payments and software startup redefining the merchant services industry.
The startup was founded to bring together payment processing and customer engagement software, giving merchants richer data and tools that empower them to market more effectively to their customers. SpotOn has experienced exponential growth since its inception four years ago.
Today, SpotOn announced it has raised $125 million in Series D funding, increasing its valuation to $1.875 billion and making it a member of the highly coveted unicorn club. The round was led by Andreessen Horowitz (a16z), one of the world’s leading technology and software investors, with continued participation from current investors, including DST Global, 01 Advisors, Dragoneer Investment Group, and Franklin Templeton, as well as new investor Mubadala Investment Company.
Founded in 2017 by Doron Friedman, Matt Hyman, and Zach Hyman, SpotOn powers small and midsize businesses with the digital tools they need to run and grow, supported by personal service and delivered at a fair price.
SpotOn also offers end-to-end solutions which include marketing, website development, reservations, online ordering, digital loyalty, review management, and both retail and restaurant point-of-sale (POS) solutions. The company has 1,200 employees and maintains offices around the world, including San Francisco, Chicago, Mexico City, Detroit, Denver, and Krakow.
“SpotOn offers a fully integrated product suite that has not only helped SMBs survive the pandemic but has been the critical infrastructure to keep many of them going,” said David George, general partner at Andreessen Horowitz. “The company’s mission is to help small businesses compete and win, and this has been validated time and time again by their strong customer feedback and accelerated product adoption. We are excited to partner with SpotOn as they continue to power SMBs nationwide.”
So far this year, nearly 8,000 businesses have already made the switch to SpotOn and the company expects that number to triple by the end of the year. Restaurants and small businesses are turning to SpotOn for its no-contract policy, personal service, fair pricing, and integrated, cloud-based platform.
“Having a16z lead our Series D is an endorsement of our strong and unique position in the marketplace and recognizes our continued growth and momentum,” said Zach Hyman, Co-CEO and Co-Founder. “This capital will be used to further accelerate product development and expand our market presence.”