Exclusive: GoTab nears $15M Series A round

GoTab, an Arlington, Va.-based restaurant technology provider, is closing in on completing a Series A round of $15 million, CEO Tim McLaughlin tells Axios exclusively.

Why it matters: Investors maintain an appetite for tech startups that help consumer-facing companies either automate or improve the customer experience.

Details: New and existing investors will participate in the round that McLaughlin says will carry a valuation approaching nine figures.

• Proceeds will be invested in product, sales and marketing to essentially get the company to cash flow positive, he says.

Flashback: GoTab has raised $9.5 million in two previous rounds.

• In 2020, GoTab raised a $6 million seed round that included Andover Ventures, Branded Strategic Hospitality, Anthony Bruce, Greg Cohen, Jodie McLean, Will Graylin, George Krautzel, Andrew Newcomb and Jonathan Zabusky, according to both PitchBook and a news release.
• In July 2021, the company closed a $3.5 million round from undisclosed angel investors at a $68 million valuation, per PitchBook.

How it works: One of the ways GoTab differentiates its point-of-sale solution is by giving restaurants the ability to split tabs.

• It offers unique features such as fraud detection and risk management not commonly built into such offerings.
• The cloud-based (not cloud-managed) solution can also manage multiple points of origin, that is, route orders at large venues to the nearest kitchen, for example.
• "Our calling card is big spaces and extended experiences," McLaughlin says, so customers include concert venues, food halls, large restaurants, breweries and hotels.