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Other investors included Barclays Bank, RBC Ventures and BMO Capital Partners, as well as previous investors including OMERS Ventures, JPMorgan Chase and BDC Capital’s IT Venture Fund. The funds will be used to develop the next generation of TouchBistro’s restaurant point-of-sale (POS) software and new payment systems, and to expand into new markets. (The Logic)

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Talking point: The deal marks OMERS’s largest-ever investment in an early-stage Canadian company, and continues its recent trend of making larger tech investments: in 2017, only one of its investments was over $50 million, according to Crunchbase data. In 2018, OMERS invested $100 million in Hopper and $125 million in Berlin-based wefox Group. Lightspeed, which had its IPO in March, competes with TouchBistro’s restaurant POS system. My colleague Zane reported in May that the company was staffing up in Europe and Australia post-IPO. With the new funding allowing TouchBistro to expand internationally, the two firms will now have further opportunities to compete for restaurants’ business. Lightspeed’s stock was down over seven per cent in late afternoon trading.

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The company will offer existing customers US$5,000 to US$250,000 for a fixed fee, and use transaction data to adjust payback schedules and amounts. WebBank, a U.S. chartered bank, will issue the loans. (The Logic)

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Talking point: The POS market for independent restaurants and small chains is large and crowded, but fragmented. As startups bid to replace existing cash registers with software subscriptions, they’re expanding their offerings to include management functions like scheduling and inventory, and launching add-ons that bring in transaction-based revenue. Involving WebBank means Toast gets data and a cut of profits without loaning out any of the US$250 million it raised in March. The move opens another front of competition between Toast and Toronto-based TouchBistro, which raised $158 million in September to build more restaurant-management tools. TouchBistro’s investors include RBC, BMO, Barclays and JPMorgan Chase; CEO Alex Barrotti told The Logic that its financial partners offer loans directly to TouchBistro customers. “Unlike Toast, TouchBistro has adopted a strategy of partnering with, rather than competing with, key banks around the globe,” he said.