Password management and online checkout have always been pain points for online shoppers. Fast, a one-click login and checkout startup, is looking to solve that problem. And it just raised a $20 million Series A led by the $36 billion fintech giant Stripe.
“The issue that we’re actually solving is that there’s basically a missing layer of the internet, which is the identity layer,” Domm Holland, co-founder and CEO of Fast, told Business Insider.
Fast integrates with online merchants to offer customers the ability to log in and checkout with one click.
The first time a consumer sees the Fast checkout button, they can sign up for free. After that, they can check out with one click everywhere they see the Fast button. So to grow its user base, Fast will look to integrate with as many online merchants as possible, from e-commerce retailers to online media companies.
While Fast’s one-click password product is already live, with this latest fundraise, it will now roll out one-click payments and checkout features.
“Much of our growth over the next 12 months is basically putting the button on as many websites as possible,” said Holland.
Part of that growth will come through its partnership with Stripe, as starting next month, all of Stripe’s merchants will be able to integrate Fast into their checkouts. Long-term, the startup will look to build more online shopping products for consumers, like order tracking and returns management across different online stores, Holland said.
To be sure, Fast isn’t the only one looking to solve this problem. PayPal, for one, offers a one-click checkout product, and credit card issuers like Visa and Mastercard have partnered up on a one-click checkout, too.
But Holland says that a key differentiator for Fast is its platform-agnostic approach. Apple Pay, which also integrates into merchant check-out windows, is Fast’s biggest competitor, Holland said. But its checkout product can only be used by iPhone users and when shopping online, only on Apple’s Safari browser.
Fast’s Series A, which closed at the end of March, comes at a time where venture investors are shying away from early-stage companies, focusing much of their capital on existing investments.
But founders could take this opportunity to meet with as many people as possible, albeit virtually, realizing that relationships may take longer to build, Holland said.
For founders looking to raise, keeping potential investors in the loop is also key.
“You want to be lines, not dots, and you want to show traction,” said Holland. “The first thing I always say to anyone who’s going to be fundraising is start putting out investor updates and send them to everyone who you would want to have in the round.”
And while it’s easy to try and answer all possible questions in a pitch deck, Holland instead advises to keep it light on text.
“You should be structuring a pitch deck in a way that you actually know what question they’re going to ask you because it’s missing a bit of information that you expect that they will want,” Holland said.
Not only will this keep investors engaged, it will also demonstrate the founders’ ability to articulate the pitch and answer questions live, Holland added.https://tpc.googlesyndication.com/safeframe/1-0-37/html/container.html
Stripe’s funding comes just months after Fast’s November seed round, which was led by Index Ventures with participation from Global Founders Capital and Kleiner Perkins.
Here’s the 15-slide pitch deck it used to raise its Series A.