The Toast on the New York Stock Exchange, Inc. IPO, September 22, 2021.
Toast has a market capitalization of more than 300 billion at the time of its stock market debut on Wednesday.
The company was started by Steve Fredett, Aman Narang and Jonathan Grimm in 2012 after selling their previous employer Endeca to Oracle for 1 billion. They live in Cambridge, Massachusetts, where Endeca was, and tested products at local bars, restaurants and cafes to build their restaurant hardware and software systems.
Frederick, president of Toast, owns 33.2 million shares worth 2. 2.1 billion as of Wednesday closing. Grimm, the company’s chief technology officer, valued at .8 1.7 billion. controls one million shares, and Chief Operating Officer Narang owns 2.6..6 million shares for just 1.5 billion.
As part of the lock-up deal, the three founders and other insiders have been banned from selling the stock for 180 days, so the value of their money could drop dramatically up or down when they start cashing in.
But based on the stock’s inaugural price on Wednesday, the three joined the growing list of tech executives and founders who are expanding their tech value and technology valuation in a rising year for IPOs. The founders of Coinbase, UiPath, Roblox, and Robinhood will join the three-comma club in 2021, among others. According to Factset, the 19 tech companies that went public this year are now worth at least 10 10 billion.
Complete circle of mobile payments
Toast’s primary product focused on mobile payments almost a decade ago, allowing consumers to pay for meals from their devices. However, point-of-sale systems in restaurants make integration difficult at times, if not impossible.
To make real progress in an industry with low margins and tight budgets, Toast has decided that restaurants need to rebuild the entire technology stack, including all the hardware and software used to manage them.
Toast point of sale system
The founders also seek more experienced help from their Endeca network recruiting Chris Comparato as CEO. He was previously an executive vice president at Endeavor and has managed customer success at Aquia for the next two years. Shares of Comparato jumped more than $ 700 million in Toast on Wednesday.
By the time Tulnaro joined, Toast had made a critical decision that at the time seemed risky but in the long run became critical.
Some payment start-ups were using the iPad as their business cash register, but chose to make Toast on Android, although the technology was clearly inferior.
“Initially, iOS was a good platform,” Fredett said in an interview Wednesday from the New York Stock Exchange. “The devices were more expensive and of higher grade.”
But as smooth and felt as the iPad looked, Toast recognized several potential problems if they followed Apple’s route. Most importantly, Apple’s system lockdown – it owns all the hardware and software. As a third party developer, Best Toast can create a killer app.
Android technology, though plagued by buggy software and frequent updates, was all open source. That means Toast can design its own hardware and go deeper into the software, first using a core operating system that originated from Google, but no one really controls. This has given Toast a lot of flexibility to meet the needs of the customers.
“Over time we’ve gotten a bigger scale, we can go directly to manufacturers to build what we need for the industry,” Fredett said.
The company’s offerings, which include a full point-of-sale terminal, handheld devices for wait staff and mobile ordering and payment software used by consumers, now have 29,000 customers deployed to 48,000 restaurant locations.
Over the past year, consumers have become much more familiar with toast – which is why the founders never predicted.
Covid-1 initially hurt the business, which is almost entirely dependent on a thriving food industry. But as restaurants struggled with epidemic limitations and tried to find ways to meet consumer demand for takeout options and contactless orders, Toast came up with an option that most high-end restaurants never considered.
One of the most popular products is mobile ordering, which consumers use to avoid physical menus from their devices and pay automatically without having to wait for a check. That’s exactly what the company wanted to do eight years ago, when technology wasn’t ready.
“We certainly see it as something that has come in full circle,” Narang said Wednesday. “It’s amazing to see some growth.”
Clock: Toast goes publicly valued at $ 20 billion