Bypass Mobile pivots business model, raises $5.5M financing

Jan 30, 2015
Austin Business Journal

Two years after changing its business model, Bypass Mobile LLC announced that it has raised $5.5 million to expand its share of the mobile point-of-sale market

The Austin-based company that develops software for stadium and arena vendors now plans to grow the business on college campuses and cruise ships. Bypass Mobile's software is designed for use on tablet computers, and that means an evolving source of users, CEO Brandon Lloyd said

In 2010, Bypass Mobile launched a smartphone application designed to enable fans to order and pay for concession items from their seats at sports venues for a 99-cent transaction fee. The concessionaire texted the customer when the order was ready and sent a bill to the fan's credit or debit card company

Customers included the Minor League Baseball team Round Rock Express and its Major League Baseball parent club, the Texas Rangers; the Dallas Stars and Phoenix Coyotes of the NHL; and the Dallas Mavericks of the NBA

In 2010, Bypass Mobile completed a $600,000 round of financing from a syndicate of eight angel investors. The following year, it raised a $1.7 million funding from 14 investors, according to a filing with the U.S. Securities and Exchange Commission

The company then shifted its focus to provide vendor software that works with computer tablets. In addition to enabling transactions, the software tracks sales and inventory in a way to provide notices to the owner. A run on hot dogs in one section of a stadium gets flagged so vendors can adjust inventories, Lloyd said

Bypass Mobile, which employs 45 workers, collected the latest round of capital from Cypress Growth Capital LLC, an Austin-based firm that invests in tech-enabled companies generating $3 million to $20 million in annual revenue

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