ACV Auctions raises $15 million in venture capital amid fast expansion

11.06.17

News

By Tribeca Venture Partners

ACV Auctions has raised $15 million in Series B venture capital funding, continuing the Buffalo-based tech startup’s meteoric trajectory.

ACV was founded in late 2014 by co-founders Joseph Neiman, Dan Magnuszewski and Jack Greco. It subsequently raised a $1 million seed round from local angel investors in 2015, won the $1 million grand prize at the 43North business competition in October 2015 and raised $5 million in Series A funding in summer 2016.

The new investment comes via Bessemer Venture Partners, a venture capital firm headquartered in Silicon Valley with offices around the world. An ACV news release noted the company fits into two areas of focus at Bessemer, including marketplace startups and cloud-based/software-as-a-service platforms.

The company has built a web-based platform for wholesale car auctions, proposing to replace the timely and expensive process of physical auctions. It seeks to establish its presence in each new territory by hiring employees to engage dealers and earns a small fee on each transaction.

The company continues to establish its presence in new territories throughout the Northeast and is also pushing into the Midwest, part of an eventual plan that includes the entire country.

ACV now has more than 60 employees and announced Tuesday it expects to add more than 100 employees each year for the “foreseeable future.” It is now run by CEO George Chamoun, who co-founded Synacor Inc. in his University at Buffalo dorm room and built it into a publicly-traded provider of technology solutions for the telecom industry, headquartered in downtown Buffalo.

“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,” Chamoun said in a news release. “Bessemer Venture Partners is one of the top investors in the country and will add tremendous value to our rapid market expansion.”

ACV Auctions has raised $15 million in Series B venture capital funding, continuing the Buffalo-based tech startup’s meteoric trajectory.

ACV was founded in late 2014 by co-founders Joseph Neiman, Dan Magnuszewski and Jack Greco. It subsequently raised a $1 million seed round from local angel investors in 2015, won the $1 million grand prize at the 43North business competition in October 2015 and raised $5 million in Series A funding in summer 2016.

The new investment comes via Bessemer Venture Partners, a venture capital firm headquartered in Silicon Valley with offices around the world. An ACV news release noted the company fits into two areas of focus at Bessemer, including marketplace startups and cloud-based/software-as-a-service platforms.

The company has built a web-based platform for wholesale car auctions, proposing to replace the timely and expensive process of physical auctions. It seeks to establish its presence in each new territory by hiring employees to engage dealers and earns a small fee on each transaction.

The company continues to establish its presence in new territories throughout the Northeast and is also pushing into the Midwest, part of an eventual plan that includes the entire country.

ACV now has more than 60 employees and announced Tuesday it expects to add more than 100 employees each year for the “foreseeable future.” It is now run by CEO George Chamoun, who co-founded Synacor Inc. in his University at Buffalo dorm room and built it into a publicly-traded provider of technology solutions for the telecom industry, headquartered in downtown Buffalo.

“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,” Chamoun said in a news release. “Bessemer Venture Partners is one of the top investors in the country and will add tremendous value to our rapid market expansion.”

Originally published on March 8, 2017.