EatStreet raises $6 million in funding, plans expansion

Special to The Freeman

April 8, 2014

 EatStreet is a burgeoning online and mobile food ordering service that streamlines commerce between restaurants and diners in 75 cities nationwide.

MADISON – The Madison start-up that allows people to order food online and with mobile devices in 75 cities announced Tuesday it has acquired $6 million in Series B funding.

EatStreet secured the funding with participation from Cornerstone Opportunity Partners, Independence Equity, Great Oaks Venture Capital, CSA Partners, Silicon Valley Bank and angel investors, according to the announcement. EatStreet will use the funding to expand into additional markets, double its workforce and remain at the vanguard of technological development.

“There's a tremendous amount of excitement about our industry right now,” said Matt Howard, CEO and co-founder of EatStreet, in a statement. “While we certainly respect the success of our competitors, we feel the opportunities for growth and innovation within the online food ordering space are vast.”

Since starting in 2010, EatStreet has recorded an average annual sales growth of 300 percent, a rate which the additional capital is intended to accelerate, according to the announcement. In the past three months, the company has added 3,000 restaurants with an anticipated mark of more than 15,000 restaurants in about 150 cities by the end of 2014.

A portion of new funding will go toward enhancing the customer ordering experience.

“We've developed a very aggressive product roadmap which places a strong emphasis on mobile. Our iPhone and Android apps, as well as our mobile website are all getting revamped,” Howard said.

In addition to an online ordering platform, EatStreet also offers restaurants custom websites, mobile ordering, and Facebook ordering. Through its Give Back program, EatStreet has donated to more than 100 nonprofit organizations across the country.