Al Gore. Anthony Harvey/Getty Images
Following the IPO of Toast, Al Gore's fund disclosed a 0.5% stake.
Generation Investment Management's Toast stock has a value of around $128 Million.
Toast's Series C funding round of $101 million was co-led by Gore and his team in 2017.
Al Gore is most well-known for his warning that the world is in peril if we don't address climate change. After Toast's September stock-market debut, the former US vice president will be celebrating another hot prospect.
Gore is the cofounder and chairman of Generation Investment Management, a sustainable-investment fund with a $24 billion US stock portfolio. Generation recently announced that it holds 2.5 million Toast Class A shares, which is 0.5% of the company's outstanding shares. Based on Toast's Tuesday closing stock price, the stake is estimated to be worth $128 million.
Toast did not list Generation as a major shareholder in its IPO filing. Gore's fund holds less than 5% of the company. Generation was the co-lead of Toast's Series C financing round, which raised $101 million in 2017. Generation is likely to have made a huge unrealized profit on its initial bet on Toast, which now has a market capitalization of $26 billion.
Insider reached out to Generation and Toast for no comment.
Toast offers cloud-based point-of-service (POS), mobile systems to restaurants. These units allow restaurants to process orders quicker, increase efficiency, reduce waste and make more money. Bessemer Venture Partners and Tiger Global Management are Toast's largest investors. T. Rowe Price is Toast's second largest investor.
Although the startup's revenue soared 24% to $823million in 2020, a sharp rise in costs caused its net loss to increase by 19% to $248million. Toast's revenue nearly doubled year-over-year to $704m in 2021. However, the company lost $235m in that period.
Gore was the star of "An Inconvenient truth", an Oscar-winning documentary. He also received the Nobel Peace Prize in 2007 for raising awareness about the climate crisis.