ACV Auctions, the $1 million winner of the 2015 43North startup competition, has just raised an additional $5 million in venture funding. The venture funding was led by Tribeca Venture Partners, along with SoftBank Capital NY (SBNY), Armory Square Ventures and Rand Capital (Nasdaq: RAND).
ACV Auctions is a mobile application that conducts live auctions on franchise dealer lots. The premise behind the technological advancement is that each used car auction lasts 20 minutes, making it fast and easy for buyer parties to place bids and see results. Instead of traveling to the auctions, the bidders can simply log on and follow the auction process from anywhere in the world.
Furthering the excitement behind the ACV Auctions windfall, the company appointed Synacor (Nasdaq: SYNC) founder George Chamoun as Chief Executive. Chamoun co-founded Synacor, is Chairman of Launch NY and was an early angel investor with ACV Auctions. The tech guru will act as the company’s Chief Executive Officer. The company’s co-founder, Joe Neiman, will step down as CEO and will join the market development team. Also coming onboard are Brian Hirsch (Tribeca Venture Partners) and Jordan Levy (SBNY), who have joined the Board of Directors.
“In just one year, more than 800 dealerships registered for our mobile service, proving the value of our highly innovative service – these are the same reasons we also attracted top venture capital firms to fuel our growth,” Chamoun noted. “We are proving the case that dealers prefer to purchase wholesale inventory on ACV, because we enable transparency, trust and faster access to fresh trades.
“ACV Auctions is to car auctions what broadband was to dialup: a superior experience by every measure. Our team is proud to partner with franchise and independent dealers throughout the country by offering a proven service that adds tremendous value to their businesses, and to the dealer industry overall.”
“Tribeca invests in world class entrepreneurs and radical innovation — not incremental improvement,” said Brian Hirsch, Tribeca Venture Partners. “ACV already proved in its first year that it can transform the wholesale automotive sector and has a proven team of entrepreneurs that understand how to build a high growth business.”
“Having owned a used car business myself and spending years buying cars in physical auctions, I understand the many challenges that dealers face,” said ACV Auctions Co-founder Joe Neiman. “With ACV, we have created a service that significantly reduces risk for used car dealerships.”
“43North is excited to see ACV Auctions receive $5 million in venture funding, and we welcome George Chamoun as their CEO,” said John T. Gavigan, 43North Executive Director. “We look forward to seeing ACV Auctions continue to grow and revolutionize the wholesale auto auction process.”