ACV Auctions, a Buffalo online auto auction business, has secured $31 million in funding that the company says will help it expand to the West Coast by year's end.
ACV, which won the $1 million top prize in the 2015 edition of 43North, secured the funding from Bessemer Venture Partners, Tribeca Ventures, Softbank NY and Armory Square Ventures. Since ACV was launched in 2014, the company has raised $53 million in capital.
ACV said it has 207 employees, sells more than 1,000 cars per week, and is signing up more than 400 dealers per month. The company currently operates and sells vehicles in 35 East Coast and Midwest markets, but expects to double that number to more than 70 by expanding to the West Coast.
The company also expects to use the additional funding to advance its technology and build its data and analytics around vehicles.
California-based Bessemer Venture Partners, which funded early-stage investments in Skype and Pinterest, invested $15 million in ACV last year.
"As venture investors, we double down on great teams and companies that have proven they can change an entire marketplace," said Bob Goodman, a partner at Bessemer, referring to the latest investment.
ACV gave car dealers a new way to sell unwanted vehicles, creating a smartphone app that allows those cars and trucks to be sold in 20-minute online auctions rather than through conventional auctions that are typically held weekly.
Of ACV's 207 employees, 100 are based in Buffalo, said Danielle Thomas, a company spokeswoman. By the end of 2018, ACV expects to have more than 325 employees.