- Restaurant software platform company MarginEdge announced that it raised $5 million in Series A funding led by Osage Venture Partners
MarginEdge — a restaurant software platform company — announced it raised $5 million in Series A funding. Osage Venture Partners led the funding round with participation from In Good Company, a New York City-based hospitality company with more than a dozen restaurants and other restaurant owner investors. Including this funding round, MarginEdge has raised a total of $10.4 million.
Recently MarginEdge signed its 1,000th restaurant and now the company serves clients across 35 states. Now MarginEdge processes more than 20,000 invoices a week for restaurants collectively doing $2 billion a year in sales and representing $700 million a year of purchasing data.
“As a restaurant owner for 15 years myself I am well aware of how most software built to ‘help’ our industry causes as many headaches as it solves,” said Bo Davis, CEO of MarginEdge. “Myself and fellow restaurant owners came together with a ground-up approach to back-office operations that focuses on removing headaches and providing just in time results. We’re excited to see this approach resonating, with a dozen of our clients investing in the company and a twelve-month customer retention rate of 94 percent. Restaurants love us because we built software to solve ’OUR’ problems, not theirs.”
With this additional investment, it will enable MarginEdge to continue developing its restaurant platform and accelerate efforts to expand geographically and through new partnerships.
“When we met MarginEdge we knew this was something different that we wanted to be a part of— restaurant owners that came together to solve the headaches of the back office in a completely new and novel way. MarginEdge removes the paperwork from the restaurants completely and gives us better control of recipes, inventory, budgets, and overall financial controls,” added Jeffrey Brosi, founder and Managing Partner of In Good Company Hospitality. “IGC Hospitality looks for three keys things before investing in a company: good people, good synergy and a good plan. Bo and the MarginEdge team have all three.”
MarginEdge’s platform essentially eliminates unproductive paperwork and streamlines the flow of operational data. And MarginEdge is reimagining the back office and freeing restaurants to spend more time on their culinary offerings and guest experiences.
“MarginEdge allowed our team to go from being an accounting department to being more of a finance department,” explained Javier Retamar, CFO of Maple Street Biscuits (acquired by Cracker Barrel for $36 million). “Now, it’s not just about inputting things after the fact; we have the time and tools to analyze.”
Some of the previous investors in MarginEdge include:
– Yohan Allender CPA, CFP, MBA – Restaurant entrepreneur
– Greg Casten – Founder of Ivy City Smokehouse, Owner/Operator Tony & Joe’s, Nick’s Riverside Grill and former Chair of Restaurant Association
– John Corso – Coastal Companies
– Bo Davis, Founder, Wasabi
– Irish Angels
– Tim Lydon, Owner & CEO of Profish
– Tim McLaughlin, founder of Caboose Brewery and GoTab
– Nigel Morris – Co-founder of Capital One and Managing Partner of QED Investors
– Amir Mostafavi – Founder & CEO, South Block Co.
– Patrick O’Reilly – former President of Advanced Predictive Technologies
– Osage Venture Partners
– John Pepper – Founder of Boloco
– Roy Phillips – Partner at Wasabi (previously Joint Venture Partner with OSI Brands) and
– Geoff Tracy – Founder & President at Chef Geoff’s Universal; former Chair of DC Restaurant Association
