Mobile wholesale marketplace ACV Auctions has secured $15 million in venture funding in a Series B investment round led by Bessemer Venture Partners that the online auction platform will use to expand into additional markets.
ACV secured $5 million in venture capital last year in a round led by Tribeca Venture Partners. It won the 43North startup competition in 2015, pulling in $1 million.
ACV also secured $1 million in angel investment funds in 2015.
“More than 20 million used cars are bought and sold wholesale every year, mostly through physical auction sites,” Bessemer Venture Partners partner Bob Goodman said in a news release. “Dealers are ready to take their business online and eager to exploit ACV's 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,” said Goodman, who will join ACV’s board.
Bessemer has had some focus in marketplace companies and cloud/SaaS startups, which made ACV attractive.
“We know great companies when we see them,” said Goodman.
ACV recently expanded into Northeast Ohio, Eastern Massachusetts and Washington, D.C. Its operations also include the Buffalo, Rochester, Syracuse, Binghamton and Albany areas of New York, Pittsburgh, Northern New Jersey and Western Massachusetts. This year, ACV plans to continue growth along the East Coast and into the Midwest.
Incentives are offered to the first major dealer group signing up in each market. It currently has more than 60 employees and plans to add more than 100 each year “for the foreseeable future,” the company said.
“Our innovative auction platform, and the high value it provides to dealers, continues to attract customers and investment from leading venture capital firms,” ACV chief executive officer George Chamoun said in a news release.
“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. Bessemer Venture Partners is one of the top investors in the country and will add tremendous value to our rapid market expansion.”