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Toast’s three co-founders will join the ranks of millionaires after an IPO

Rapid increase in toast With a market capitalization of over $ 30 billion on Wednesday’s stock market debut, all three co-founders have become millionaires.

Steve Fredette, Aman Narang and Jonathan Grimm founded the company in 2012 after their former employer, Endeca, was sold to. Oracle For $ 1 billion. They stayed at home in Cambridge, Massachusetts, where Endeca is based, and built the restaurant’s hardware and software system by testing products at local bars, restaurants, and cafes.

Fredette, toastAs of the end of Wednesday, the president of the company owns 33.2 million shares worth $ 2.1 billion. The company’s Chief Technology Officer, Grimm, manages $ 1.7 billion worth of 26.8 million shares, and Chief Operating Officer Naran owns 24.6 million shares in just over $ 1.5 billion.

Toast, Inc. on the New York Stock Exchange on September 22, 2021. IPO.

Source: NYSE

The three founders and other insiders are restricted from selling their shares for 180 days as part of a lockup agreement, so by the time they can start cashing out, the value of their shares will be It can go up and down dramatically.

However, based on Wednesday’s stock debut price, the trio will join the growing list of tech executives and founders who are seeing net worth swell between the rapid growth of IPOs and the expansion of tech valuations.Founder of Coinbase, UiPath, Roblox When Robin hood According to FactSet, at least 19 tech companies launched this year are currently worth at least $ 10 billion.

Full Yen to Mobile Payments

Toast’s first product focused on mobile payments almost 10 years ago, allowing consumers to pay for meals from their devices. However, at that time, the POS system of restaurants was difficult, if not impossible, to integrate.

Toast says it needs to rebuild its entire tech stack, including all the hardware and software restaurants use to manage their operations, in order to make real progress in a low-margin, tight-budget industry. I decided.

Toast POS system

toast

The founder also hired Chris Comparato as CEO and sought more experienced support from the Endeca network. He was formerly Executive Vice President of Endeca and has been conducting customer success at Acquia for over two years. Comparato’s investment in Toast jumped to a value of over $ 700 million on Wednesday.

By the time Comparato joined, Toast had made important decisions that seemed dangerous at the time, but turned out to be important in the long run.

Some start-ups used the iPad as a business cash register, but Toast chose to build it on Android, even if the technology was clearly inferior.

“In the early days, iOS was a better platform,” Fredette said in an interview Wednesday with the New York Stock Exchange. “The device was more expensive and of higher quality.”

But just as the iPad looks and feels sophisticated, Toast has an iPad. Apple root. Most importantly, Apple’s system is locked down. Apple owns all hardware and software. As a third-party developer, the best thing Toast can do is create a killer app.

Android technology suffered from buggy software and frequent updates, but it was all open source. In short, Toast was able to use its core operating system to design its own hardware and dive deeper into the software. Google It had its origins, but no one really controlled it. This gives Toast a great deal of flexibility in meeting customer demand.

“Over time, as we grew larger, we were able to go directly to the manufacturer to produce everything the industry needed,” Fredette said.

The company’s products include full point-of-sale terminals, handheld devices for serving, mobile ordering and payment software for consumer use, and are currently deployed by 29,000 customers in 48,000 restaurant locations.

Last year, consumers became very familiar with toast — for reasons the founders couldn’t predict.

Covid-19 was originally Hammered the business, This is almost entirely dependent on the thriving food service industry. But as restaurants tackle pandemic restrictions and try to find ways to meet consumer demand for takeaway options and contactless orders, Toast offers a range of options that most fine dining restaurants have never thought of. I presented it.

One of the most popular products is mobile ordering, which consumers use to avoid physical menus from their devices and pay automatically without waiting for a check. That’s exactly what the company wanted to do eight years ago when technology wasn’t ready.

“Sure, I think it’s a complete round,” Naran said Wednesday. “It’s amazing to see some of the growth.”

look: Toast will be published with a valuation of $ 20 billion

Toast’s three co-founders will join the ranks of millionaires after an IPO

Source link Toast’s three co-founders will join the ranks of millionaires after an IPO

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