Investors deal BacklotCars $8M; KC-based startup hitting the gas on disruption
December 11, 2018 | Austin Barnes
Disrupting the used car space has driven a Series A funding round to $8 million for Kansas City-based startup BacklotCars, the company announced Tuesday.
“This investment comes at a great time. We are growing rapidly in our existing markets and expanding our national footprint. We expect to continue to add new features – to accompany our transportation network and financing programs – to help dealerships operate more efficiently,” said Justin Davis, founder and CEO of BacklotCars.
Origin Ventures led the funding round, according to a release.
Revolution’s Rise of the Rest Seed Fund, Pritzker Group Venture Capital, KCRise Fund, Royal Street Ventures, Chaifetz Group, and other undisclosed investors participated.
“We are very excited to welcome new capital partners to BacklotCars,” Davis added.
Click here to read more about the impacts of hometown versus outside capital.
“We are thrilled to invest in a dynamic and disruptive marketplace like BacklotCars,” said
Origin co-founder, Steve Miller. “The wholesale car market has long been ripe for disruption, and we believe Justin and the BacklotCars team will continue to empower dealers to move their inventory more effectively.”
In business for just two years, BacklotCars innovates the wholesale auto industry by enabling dealers, financing, and rental companies to make purchases online without attending auto auctions.
The company operates in more than 18 states with a transaction volume of more than $100 million, BacklotCars said.
“We have a talented team of problem solvers here that gets things done,” said Nathan Sterner, growth and marketing manager. “[We’re] looking forward to putting this money to work to realize our vision even faster and give dealers a better way to buy and sell cars.”
As part of the round, the company announced it also received a credit facility expansion of $10 million.
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