DriverUp, the first online marketplace for automotive financing, has closed a USD20 million Series B round led by new investor SF Capital Group with participation from existing investors Emerald Development Managers and RRE Ventures.
The DriverUp marketplace gives accredited investors an opportunity to directly enter the USD1 trillion auto lending industry and provides dealers with an expedited, streamlined credit process.
"This Series B round allows us to accelerate our product development, support added marketplace loan inventory and ramp up marketing efforts," says Sam Ellis, chief executive officer, DriverUp. "We have seen strong interest from accredited investors since launching, and are confident this round of funding will bolster DriverUp's ability to take the platform to new levels and reach a larger audience."
DriverUp also announced the appointment of Neil Wolfson (pictured) to the company's Board of Directors. As president of SF Capital Group, Wolfson oversees all debt and equity investing, asset allocation, investment management and operations for a large multi-generational family office. He also serves on the Board of Directors for OnDeck Capital, BorrowersFirst, Patch of Land, TodayTix, Nextivity and FastPay.
"In a very short time, DriverUp has clearly demonstrated that their technology can fundamentally improve auto lending, similar to how we have seen FinTech disrupt other industries," says Neil Wolfson, president, SF Capital Group. "The auto-tech sector as a whole will continue to grow over the next few years as more stakeholders seek out efficient, platform-based auto finance options, and DriverUp is uniquely positioned to lead this charge."
DriverUp is the first company that offers auto loans as an investment opportunity to accredited investors such as hedge funds, endowments, family offices, and high net worth individuals. Previously, investing in this sector was limited to a handful of large institutions.
The DriverUp platform uses technology to fundamentally improve how loans are secured and serviced by creating a direct-to-investor option that until now has not existed within the auto-lending industry. Through DriverUp's proprietary software and advanced data analytics, the marketplace enables efficient processing and direct investment in auto loans, with full transparency and reporting.