SpotOn Transact LLC said June 11 that it raised a $40 million funding round led by Franklin Venture Partners, the VC arm of Franklin Templeton. Dragoneer Investment Group also participated. SpotOn, of San Francisco, is a payments and software company.
SpotOn Raises $40 Million Funding Round Led by
Franklin Templeton and Dragoneer Investment Group
Next Generation Payments and Software Company Will Use Capital to
Accelerate Growth and Fuel Expansion into New Markets
SAN FRANCISCO—June 11, 2019—SpotOn Transact, LLC (“SpotOn”), an innovative payments and software company, today announced $40 million in new funding led by Franklin Venture Partners, the venture capital arm of Franklin Templeton, with significant participation from Dragoneer Investment Group.
The company has grown 400% over the last 12 months and added over 3,500 clients in the last 90 days. This round of funding will be used to accelerate its momentum and fuel its expansion into new markets. As part of these efforts, the company plans to continue growing its field sales team, and expects to add an additional 100 employees in its high-growth SpotOn Restaurant division.
SpotOn was founded in 2017 by Matt and Zach Hyman, twin brothers who each have more than 20 years of payment processing experience and most recently sold Central Payment to Total System Services (“TSS”) with a final valuation of $840 million, along with seasoned Chicago FinTech entrepreneur Doron Friedman. They built the company on the premise that small- and medium-sized businesses (SMBs) are the hallmark of the American economy, comprising 99.7% of businesses in the U.S., and yet they have been left underserved by FinTech companies. Going beyond traditional payment processing, SpotOn integrates payments capabilities with its software solutions to give businesses an unparalleled set of growth-driving tools.
“Small- and medium-sized businesses are starved for solutions to help them grow and function,” said Co-Founder Matt Hyman. “SpotOn is redefining how SMBs operate by offering tools previously only accessible to customers with deep pockets or massive teams. But for SpotOn, it’s more than just tools and technology—it’s about our team’s unique personal approach to help our clients navigate through these new technologies.”
SpotOn’s investment into product development has produced numerous valuable solutions for businesses to choose from, including:
• Fully-Integrated Point-of-Sale (POS) Solutions
• Custom Websites
• Digital Loyalty & Marketing
• Review Management
These tools come with personalized service and setup and are easily accessible to all SpotOn clients. The platform saves businesses time by enabling them to be more efficient, allowing them to transact with their customers however they want, and helping them build relationships with customers in ways they never could before.
“SpotOn’s rapid growth and ability to bring real value to the SMB market has been incredibly impressive,” said Chris Anderson, Vice President and Portfolio Manager at Franklin Templeton. “Whether you’re a restaurant looking for a cloud-based point-of-sale solution, a salon looking to book appointments through a custom-built website, or an auto repair shop looking for ways to build relationships with customers, SpotOn has developed a variety of powerful solutions for all types of merchants.”
The last 12 months have been transformational for SpotOn. Highlights have included the acquisition of EmaginePOS to create a best-in-class restaurant POS offering, the acquisition of Lifeyo to offer customized websites, and the doubling of the SpotOn sales and service teams—all while maintaining the personal level of support clients deserve.
SpotOn is headquartered in San Francisco with expanding product and technology teams in Chicago and operations in Detroit. The company currently has more than 550 employees, including 350 field sales representatives, across the organization.
About SpotOn Transact, LLC
SpotOn Transact, LLC (“SpotOn”) is a cutting-edge payments and software company redefining the merchant services industry. SpotOn brings together payment processing with solutions that empower clients to enhance how they run their business. The SpotOn platform offers the most comprehensive tools for small- and medium-sized businesses, including payments, point-of-sale, custom websites, appointments, marketing, reviews, analytics and loyalty, backed by industry-leading customer care. For more information, visit www.SpotOn.com.
About Franklin Templeton Ventures
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating as Franklin Templeton. Franklin Templeton’s goal is to deliver better outcomes by providing global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the Company has expertise across all asset classes, including equity, fixed income, alternatives and custom multi-asset solutions. The Company’s more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With employees in over 30 countries, the California-based company has more than 70 years of investment experience and over $712 billion in assets under management as of March 31, 2019. For more information, please visit franklintempleton.com.
About Dragoneer Investment Group
Dragoneer is a San Francisco-based, growth-oriented investment firm with over $7 billion in long-duration capital from many of the world’s leading endowments, foundations, sovereign wealth funds, and family offices. Dragoneer has a history of partnering with management teams growing exceptional companies characterized by sustainable differentiation and superior economic models. The firm’s track record includes public and private investments across industries and geographies, with a particular focus on technology-enabled businesses. Dragoneer has been an investor in companies such as Airbnb, Alibaba, AmWINS, Appfolio, Dollar Shave Club, Etsy, Mercado Libre, Nubank, PointClickCare, ServiceNow, Slack, Spotify, Square, Twilio, Uber, and others.