Investment still happening in an uncertain market
LA-based startup Barpay secures $300k in early funding and strategic partnership with LogicBoost Labs
Seed and early stage investing is down in LA but Barpay is ready for when bars re-open
Los Angeles, CA – April 22, 2020: Seed and early stage startup investments, which typically represent sentiment with riskier investors, have plummeted in Los Angeles in recent weeks coinciding with uncertainty around the COVID-19 pandemic. Barpay, an LA-based startup focused on optimizing revenue and profitability for bar owners, is announcing today an investment of $300k from LogicBoost Labs, a San Diego based startup accelerator. The Barpay investment is one of the few reported seed or early stage investment deals in Los Angeles in the last three weeks.
Joe De Pinto, co-founder at Barpay says, “we’re entering a new era for bars because of COVID-19. The customer’s perception of what is ‘clean’ has undoubtedly shifted. Bars that embrace technology to offer the safest or cleanest possible experience are the bars that customers are going to be looking for when places start to re-open.”
Barpay focuses on a contact-less experience by allowing the customer to order and pay from their phone, which eliminates the need for touching a menu, or handling cash or credit cards. De Pinto adds, “there are also financial benefits in these lean times by allowing bar owners to save on credit card fees, decrease costs and increase revenue through mobile notifications and offering specials on higher margin items.”
LogicBoost Labs is providing the investment and strategic partnership to Barpay. “We saw similar uncertainty back in the 2008 financial crisis. But those companies that weathered the storm and invested in the future went on to do great things” said Jonathan Cogley, CEO at LogicBoost Labs. “We believe Barpay is well positioned to do just that and will appeal to bar owners in LA and beyond.”
Joe De Pinto and his co-founder Dan Wagner ascribe their app’s success to their time spent in the trenches with bar owners perfecting the system. Leo Amari, owner of Rocco’s Tavern, 77 Lounge, 901 Bar & Grill and early advocate of Barpay says, “Barpay is finding different ways for me to make money when I normally wouldn’t or make even more money when I’m busy. It keeps increasing my sales and decreasing my labor costs.”