“More than 20 million used cars are bought and sold wholesale every year, mostly through physical auction sites,” explained Bob Goodman of Bessemer Venture Partners. “Dealers are ready to take their business online and eager to exploit ACVs 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.” Given that ACV fits within two historical areas of focus for the firm, Marketplace Companies and Cloud/SaaS Start-Ups, BVP was particularly excited to invest in ACV. “We know great companies when we see them,” said Goodman.
ACV’s advanced mobile platform enables automotive dealers to view, bid and purchase used car inventory via online auctions. How it works: Used car dealers select the type of cars they wish to purchase; when those vehicles become available ACV sends an alert to the dealer’s mobile device, and a live auction follows. Auctions are conducted from dealer lots and last just 20 minutes. ACV’s end-to-end solution includes a detailed condition report, which takes the guesswork out of assessing the value of any vehicle. Additionally, it is used to handle payments, title transfers and transportation arrangements for purchased vehicles.
Traditional car auctions, in comparison, are staged at off-site physical locations that can be far away – conventional bidding houses are aggregated regionally. Once there, dealers typically have to monitor multiple bidding lanes simultaneously; this makes it difficult to properly assess and secure the best wholesale vehicles. Payment, title transfer and vehicle transportation must be handled, and transacted, separately.
“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. Bessemer Venture Partners is one of the top investors in the country and will add tremendous value to our rapid market expansion.”
ACV Auctions recently announced expansion into new territories, including Northeast Ohio, Washington DC and Eastern Massachusetts. The company now operates in: New York, including Buffalo, Rochester, Syracuse, Binghamton and Albany as well asWestern Massachusetts, Pittsburgh and Northern New Jersey.
In recognition of its rapid expansion, ACV Auctions has been hiring aggressively. ACV currently has more than 60 employees and expects to hire 100-plus employees annually for the foreseeable future. In 2017, ACV Auctions will expand down the eastern seaboard and into the Midwest.