Buffalo-based ACV Auctions has made some serious headway in optimizing the way that used-car dealers purchase from one another. The company, which was fueled by Z80 Labs and the 43North startup competition, has now landed $31 million in Series C venture funding by Bessemer Venture Partners, Tribeca Ventures, SoftBank NY and Armory Square Ventures. The new injection of funding will allow ACV to roll out across the country by the end of 2018.
“Our goal is to bring trust and transparency to the wholesale vehicle market by providing dealers with an easy-to-use digital platform that saves them time, money and resources,” said George Chamoun, CEO, ACV Auctions. “The additional funding will enable us to innovate on top of our existing platform while also fueling growth into new markets at a rapid rate.”
Currently, ACV is selling 1000 cars a week between dealers. And there appears to be now slowing down, with over 400 new dealers signing up every month. The latest funding surge will take the auction company from 35 markets (located in the east and midwest) to a whopping 70 markets nationwide.
Moving forward, ACV plans to use Series C funding to enhance its technology and customer experience, while stepping up its data and analytics revolving around the vehicles subject to auction.
“ACV Auctions has proven it can grow rapidly and meet the needs of thousands of dealers, while revolutionizing the wholesale experience,” noted Bob Goodman, partner at Bessemer Venture Partners. “As venture investors, we double down on great teams and companies that have proven they can change an entire marketplace.”