GrubHub has closed $11 million in Series C funding led by Benchmark Capital. GrubHub, of Chicago, provides a web and mobile services the organizes restaurant data for consumers. Benchmark is Menlo Park, Calif.-based VC firm that has invested in OpenTable, Yelp, Zillow, Twitter and eBay.
GrubHub, a web and mobile service that organizes restaurant data for consumers and simplifies online ordering for delivery and takeout, has closed $11 million in Series C funding led by Benchmark Capital. Benchmark Capital is the investment group behind well-known Internet consumer brands such as OpenTable, Yelp, Zillow, Twitter and eBay. The series C funding will allow GrubHub to heavily invest resources to further enhance its online and mobile solutions, and to expand marketing and sales efforts to support its growth. The company has raised $14.1 million to date.
“Since its initial launch in 2004, GrubHub’s growth has been extraordinary,” said Bill Gurley, general partner of Benchmark Capital. “I am excited to work with two remarkable founders in Matt Maloney and Mike Evans, and I am also thrilled about the opportunity to partner again with OpenTable founder and GrubHub board Chairman Chuck Templeton. The team has clearly demonstrated their ability to successfully launch new markets, scale their business, and build a brand that is highly valued by its customers.”
Frustrated by the lack of restaurant delivery information available on the Internet, Matt and Mike created GrubHub to organize and simplify all the restaurant data available to consumers. Visitors to the site or mobile users simply enter their address to see every local restaurant that delivers to them. Users can view menus and coupons, read user reviews and order for free online, by phone or through the GrubHub iPhone and Android apps.
GrubHub’s base of 13,000 restaurants represents one of the largest independent restaurant networks in the U.S. The company expects to send more than $70 million in food orders to its businesses by the end of this year.
“I’m very excited to be a part of GrubHub,” said Chuck Templeton. “I see striking similarities between OpenTable and GrubHub including their growth strategies and market dynamics.”
There are more than 300,000 delivery and takeout restaurants in the country and on average, GrubHub users order out at least ten times a month. With more people now searching for restaurants and ordering food on the Internet and through their smart devices, the opportunity for continued growth is substantial for GrubHub.
“Independent restaurateurs know how to make great food, but when it comes to marketing their businesses online, they need additional support,” said Matt Maloney, GrubHub co-founder and CEO. “Despite the slowdown in the economy, GrubHub’s online solutions and mobile apps continue to drive significant business to local restaurants. This new round of funding is going to allow us to bring our technology to even more restaurants in even more cities.”
Benchmark Capital has a strong record of investing in market leaders, especially in the online space.
“Bill Gurley and his team bring proven investment experience working with incredibly successful companies,” said Maloney. “Benchmark’s deep knowledge of consumer facing Internet companies makes them a great partner for us.”
GrubHub is a ventured-backed company founded in 2004 by Chicago-based software engineers Matt Maloney and Mike Evans. The website shows consumers all of the local restaurants that deliver to them and allows diners to order directly online, by phone or through the GrubHub iPhone and Android apps. Both apps are free from their respective app markets, and it is also free for users to order online at GrubHub.com.
A year after winning the University of Chicago New Venture Challenge, GrubHub secured Series A funding in 2007 through Amicus Capital, Origin Ventures and several angel investors, allowing the company to rapidly expand into the top three delivery markets – New York City, San Francisco and Boston. GrubHub secured $2 million in Series B funding in March 2009. The deal was co-led by Origin Ventures and Leo Capital, with earlier investor, Amicus Capital, participating.
GrubHub was most recently named to Inc. Magazine’s prestigious 2010 500 list, which ranks the nation’s fastest-growing privately held companies. The company came in at No. 5 in the food and beverage category and No. 229 among the top 500 U.S. companies.
The rapidly growing company currently services Chicago, New York, Los Angeles, San Francisco, Boston, Philadelphia, Washington D.C., San Diego, Oakland, Seattle, Portland, Denver and Boulder, and has plans to double its footprint in 2011. For more information, visit www.GrubHub.com.
About Benchmark Capital
Benchmark Capital, a leading venture capital firm, was founded in 1995 to help talented entrepreneurs with original ideas build successful technology companies. Benchmark’s general partners take a team-oriented, labor-intensive approach to venture investing to deliver a superior level of service to the firm’s portfolio companies. Benchmark’s portfolio includes high-profile companies such as MySQL, OpenTable, Twitter, Yelp and Zillow, and franchise companies such as eBay, Juniper Networks and Red Hat. The firm manages more than USD 2.4 billion in committed venture capital. For more information on Benchmark Capital, visit its website at www.benchmark.com.