BUFFALO, N.Y. – ACV Auctions, a mobile platform that enables used-car dealers to view, bid and purchase inventory via online auctions, today announced it has secured $15 million in venture funding led by Bessemer Venture Partners, with participation from existing investors. ACV will use the funds to expand into new territories.
This investment round was led by Bessemer Venture Partners (BVP), a $4 billion venture capital firm. BVP partner Bob Goodman will join the Board of Directors. This Series B funding builds on the $5 million in venture capital ACV Auctions secured in 2016; a round led by Tribeca Venture Partners, with participation from SoftBank Capital NY, Armory Square Ventures and Rand Capital. Additionally, ACV Auctions secured $1 million in 2015 by winning the prestigious 43North startup competition and, separately, $1 million from angel investment that same year.
“More than 20 million used cars are bought and sold wholesale every year, mostly through physical auction sites,” said Bob Goodman of Bessemer Venture Partners. “Dealers are ready to take their business online and eager to exploit ACVs dedicated marketplace of both supply and demand. Because it was built from the ground up with the needs of dealers in mind, we believe ACV has an opportunity to revolutionize the ways cars are sold in auction.”
Used-vehicle dealers using the ACV platform simply select the type of cars they wish to purchase. When those vehicles become available, ACV sends an alert to the dealer’s mobile device, and a live auction follows. Auctions are conducted from dealer lots and last just 20 minutes. ACV’s end-to-end solution includes a detailed condition report. The platform also handles payments, title transfers and transportation arrangements.
“Our innovative auction platform, and the high value it provides to dealers, continues to attract customers and investment from leading venture capital firms,” said ACV Auctions CEO George Chamoun. “Our investment in technology and superior condition reports — both are a hallmark of our service — will continue to drive down costs for dealers and improve transparency for wholesale vehicles.”
ACV Auctions recently announced expansion into new territories, including Northeast Ohio, Washington, D.C. and eastern Massachusetts. The company also operates in New York, including Buffalo, Rochester, Syracuse, Binghamton and Albany, as well as western Massachusetts, Pittsburgh and northern New Jersey.
Due to its expansion, ACV Auctions has been hiring aggressively. The firm currently has more than 60 employees and expects to hire 100-plus employees annually for the foreseeable future. In 2017, ACV Auctions will expand down the eastern seaboard and into the Midwest, according to the company.
For more, click here.
Originally posted on F&I and Showroom