This $390-million Grubhub deal was good for Dreamit - Technical.ly Philly

Business

Jul. 30, 2018 8:44 am

This $390-million Grubhub deal was good for Dreamit

Dreamit company LevelUp was acquired by Grubhub in a “spectacular outcome” for the Philly accelerator.

Part of LevelUp's 220 staffers, which will all join Grubhub upon the approval of the deal.

(Courtesy photo)

Dreamit founder Steve Welch still remembers getting LevelUp’s application to the inaugural cohort of the DreamIt Ventures accelerator, way back in 2008 when the digital payments, ordering and loyalty company went by SCVNGR and focused on interactive mobile gaming.

“The application came in at 11:59 p.m. on the day it was due,” Welch told Technical.ly. “They came in the program when Seth [Priebatsch, CEO and cofounder] was just 17. He was an exceptional individual from the start.”

Fast forward to July 2018, and the Dreamit portfolio company, which relocated to Boston after the cohort, announced its acquisition by Chicago-based Grubhub for $390 million, in a move that Welch said was telling of the founding team’s strength.

“People always talk about overnight successes,” said Welch, who relocated to Austin, Texas, in 2013 and founded cryogenics startups Restore Cryotherapy. “But they came to Dreamit now 3,718 days ago.”

Welch declined to disclose specific financial terms from the deal citing financial regulations as Dreamit is currently raising a fund. The accelerator, until 2016, took 6 percent equity in companies in exchange for a $25,000 investment and access to its programming and mentoring.

“What I can say is that this was a spectacular outcome for all parties involved,” Welch sad.

Before the acquisition, LevelUp had raised $85 million in venture capital, including a $50 million round from JPMorgan Chase, according to CNBC.

“The news of GrubHub’s acquisition of LevelUp is a great proof point that Dreamit’s model is working,” said Dreamit Managing Partner Steve Barsh. “If you bet on a great team with great ideas and have patience, things can work out very well for everyone. While SCVNGR pivoted to LevelUp, it was always the same leadership team. Investors repeatedly say ‘you bet on the team’ and this is a great example of that.”

Advertisement

“I know that as part of Grubhub, LevelUp will be able to deliver on our promises in bigger and better ways than ever before,” said Priebatsch in a public letter to restaurants and partners. “We’re excited about this next step in the LevelUp story and hope you are too.”

Grubhub said the addition of LevelUp will allow it to offer national and independent restaurants “the industry’s most comprehensive solution to drive online delivery and pickup order, from demand generation through fulfillment.” LevelUp, along with its 220 employees, will remain in Boston.

Companies: DreamIt Ventures
-30-
JOIN THE COMMUNITY, BECOME A MEMBER
Already a member? Sign in here
Connect with companies from the Technical.ly community
New call-to-action

Advertisement

Exton-based insurance software firm iPipeline purchased for $1.6B

Aramark just bought an on-demand food delivery service app

Philly Startup Leaders just launched a new website and plans for a resource center

SPONSORED

Philly

Why this dev planted roots at The Philadelphia Inquirer after starting her career abroad

Philadelphia, PA

Technical.ly Match

Web Manager

Apply Now
Philadelphia, PA

PromptWorks

Senior Software Engineer

Apply Now
Chesterrbrook, PA

Deacom

Software Quality Analyst

Apply Now

Meet the winning startups from Pennovation’s summer accelerator

PA Biotech Center just announced a $50M investment fund and accelerator

Hero Digital is acquiring Austin-based marketing company Bulldog Solutions

SPONSORED

Philly

Meet these 10 hiring companies at Super Meetup

Philadelphia

Vistar Media

Front End Engineer

Apply Now
Philadelphia

Vistar Media

Sr. Software Engineer

Apply Now
Philadelphia, PA - Center City

Odessa

Sr. Project Manager

Apply Now

Sign-up for daily news updates from Technical.ly Philadelphia

Do NOT follow this link or you will be banned from the site!