Along with appointing a new chief executive officer, ACV Auctions this week announced that it has raised $5 million in venture funding, led by Tribeca Venture Partners, with participation from SoftBank Capital NY, Armory Square Ventures and Rand Capital.
In addition, the company appointed Synacor founder George Chamoun as CEO. In conjunction with the financing, Brian Hirsch from Tribeca Venture Partners and Jordan Levy from SBNY have joined the company’s board of directors.
ACV Auctions is a mobile platform that can enable dealers to view, bid and purchase inventory via online auctions. These live auctions are conducted from franchised dealer lots and last just 20 minutes.
Overseeing this operation now is Chamoun, who replaces ACV Auctions co-founder Joe Neiman, who will focus on market development.
Chamoun brings with him a record of accomplishment as an entrepreneur and senior executive. He co-founded Synacor right out of college in 1998, and spent the next two decades building it into a trusted technology and revenue partner for some of the largest video and communication providers in the world. Chamoun also serves as chairman of Launch NY, a non-for-profit organization supporting the startup ecosystem for Upstate New York.
As an early angel investor in ACV, Chamoun was drawn by the company’s long-term potential. Since then, he says ACV’s performance — and the overwhelmingly positive response of customers — has further affirmed his confidence in the company.
“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 said.
“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,” he continued.
“ACV Auctions is to car auctions what broadband was to dialup: a superior experience by every measure,” Chamoun went on to say. “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.”
Hirsch elaborated about why Tribeca Venture Partners decided to send resources to ACV Auctions.
“Tribeca invests in world class entrepreneurs and radical innovation — not incremental improvement,” Hirsch said. “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.”
Meanwhile, Neiman insisted he will continue focusing on customers.
“Having owned a used car business myself and spending years buying cars in physical auctions, I understand the many challenges that dealers face,” he said. “With ACV, we have created a service that significantly reduces risk for used car dealerships.”
ACV was the $1 million winner of last year’s 43North startup competition, which each year draws startup applicants globally.
“43North is excited to see ACV Auctions receive $5 million in venture funding, and we welcome George Chamoun as their CEO,” 43North executive director John Gavigan said. “We look forward to seeing ACV Auctions continue to grow and revolutionize the wholesale auto auction process.”