ACV Auctions, a past 43North champion, has received a new jolt of funding to fuel its rapid growth.
The Buffalo-based online auto auction business has secured $93 million in venture capital funding. The latest round of funding was led by Bain Capital Ventures and early investor Bessemer Venture Partners.
Since 2015, ACV has raised more than $145 million, including the $1 million first prize from 43North. With its expansion, its headcount has also grown. ACV now has 500 employees across the country, a little under half of whom are based in Buffalo. Its employment has soared from about 200 people at the start of 2018.
"ACV has soared past startup phase at an incredible pace," said Brian Goldsmith of Bain Capital Ventures. "Its rapid growth and unwavering commitment to meet the buying and selling needs of auto dealers has proven it can and will continue to disrupt the traditional marketplaces for the better."
Funding also came from Future Fund, which is Australia's sovereign wealth fund, as well as early investors Tribeca Ventures and Armory Square Ventures.
ACV said the $93 million will allow the company to "double down on product and engineering, expand the breadth of its platform and provide new real-time data analytics to dealers."
More expansion is coming. ACV expects to be operating in 80 markets by the end of the year, compared to 30 at the start of 2018, and aims to be operating in more than 140 territories in 2019.
ACV won the top prize in the 2015 edition of the 43North business plan competition. The company 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.
ACV says it sells more than 10,000 wholesale vehicles a month on its auction platform, representing 1 percent of all vehicles sold at auctions.