ACV Auctions, a mobile auctioning platform, has secured $15 million in venture funding to expand its business into new territories, the company announced.
The investment builds on the $5 million in venture capital that the company secured in 2016, the $1 million it secured by winning a startup competition in 2015, and the $1 million it received from an angel investment that same year.
Bessemer Venture Partners (BVP) led the latest round of funding with participation from existing investors, according to the company. Bob Goodman, a BVP partner, will be join ACV Auction’s board.
"More than 20 million used cars are bought and sold wholesale every year, mostly through physical auction sites," said Goodman. "Dealers are ready to take their business online and eager to exploit ACVs dedicated marketplace of both supply and demand.
Through ACV Auctions’ mobile platform, auto dealers are able to view, bid, and purchase used car inventory via online auctions. According to the company, used car dealers only need to select the type of cars they wish to purchase; and when the selected vehicles become available, the platform sends an alert to the dealer’s mobile device. A live auction then follows, the company added.
The platform, according to the company provides detailed condition reports. It also handles payments, title transfers, and transportation arrangements for purchased vehicles.
"Our innovative auction platform, and the high value it provides to dealers, continues to attract customers and investment from leading venture capital firms," said George Chamoun, CEO, ACV Auctions. "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.
The company currently operates throughout New York, western Massachusetts, Pennsylvania, and New Jersey. Some of the recently announced territories that the company will be expanding into include northeast Ohio; Washington, D.C.; and eastern Massachusetts.