ACV Auctions, based out of Buffalo, New York, is a quickly expanding online wholesale car marketplace that also gives used-car dealerships and franchises a better and more efficient platform to buy or sell wholesale cars through 20 minute auctions. ACV's technology improves the standard auction operations and also provides third party inspections, account management, title processing, arbitration, and transport.
Recently, ACV announced it has raised $93 million in Series D funding in order to continue growing nationwide. And there are thousands of dealers turning to ACV Auctions to buy and sell wholesale inventory without ever leaving dealerships.
This round of funding was led by Bain Capital Ventures and early investor Bessemer Venture Partners. Future Fund, Tribeca Ventures, and Armory Square also participated in this round. Brian Goldsmith of Bain Capital Ventures said that ACV has soared past the startup phase at an incredible pace. And Bessemer Venture Partners partner Bob Goodman said that his team has been impressed by George and the team’s ability to stay ahead of the competition by moving fast and innovating on their market leading product.
Launched in June 2015, ACV now sells more than 10,000 wholesale vehicles a month through its auction platform, which is 1% of all vehicles sold at auctions today. By the beginning of 2019, ACV is going to operate in 80 markets coast-to-coast by year-end. This is up from 30 markets as of the beginning of 2018.
Since margins are compressing from new vehicle sales, many dealers have been turning to wholesale to make up for the loss. So ACV helps dealers eliminate the gamble involved in selling and buying used vehicles from traditional sources. ACV provides buyers with transparent information to make better decisions about vehicles they are interested in purchasing. And ACV’s wholesale process enables dealers to access a national buyer pool, which reduces the risk of arbitration and provides quicker inventory turnover.
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