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Blackbird gobbles up $50M for its blockchain-based payment-loyalty app forrestaurants

Blackbird Labs has secured $50 million to enhance its blockchain-based payment and loyalty app aimed at restaurants. Founded by Ben Leventhal, the app uses a unique approach to grow repeat business while simplifying transactions. With 1,000 restaurants onboard, Blackbird plans to launch its 'Blackbird Club' points service and expand beyond its New York base into other markets, leveraging backing from notable investors like Spark Capital and Coinbase Ventures.

Key points

  • Blackbird Labs raised $50 million to develop a blockchain-based payment and loyalty app for restaurants.
  • CEO Ben Leventhal aims to increase customer retention and simplify transactions through the app.
  • Approximately 1,000 restaurants are currently using Blackbird's services.
  • Funding will support the launch of a new points service, Blackbird Club, and expand physically into new markets, including Charleston, SC.
  • Investors include Spark Capital, Coinbase Ventures, Amex Ventures, and Andreessen Horowitz.
  • Blackbird's valuation was around $124 million based on its previous funding round.
  • The startup leverages blockchain for customer data ownership and aims to enhance profit margins for restaurants.

Why it matters

  • The rise of fintech innovations and blockchain solutions is a major trend in the IT industry, particularly in sectors like hospitality and retail.
  • Similar startups are addressing the challenge of declining restaurant margins due to increasing operational costs.
  • The pandemic accelerated changes in consumer behavior, increasing demand for digital solutions in dining experiences.
  • Blackbird’s approach reflects a growing shift towards ownership and loyalty in the digital economy, influenced by decentralized finance trends.

Blackbird Labs' innovative approach to integrating blockchain into restaurant payments and loyalty rewards illustrates a significant evolution in how tech can enhance customer experiences and operational efficiencies within the restaurant industry, potentially reshaping its economic landscape.