Less than one year ago, our team at BIP Capital led the Series A financing round of $3.55M for Car360, a company that was at the forefront of bringing computer vision and augmented reality to the auto industry, with participation from Mark Cuban’s Radical Investments, and new investor Service Provider Capital. And, as covered in today’s Atlanta Business Chronicle, Tech Crunch and VentureBeat, Car360 was acquired by the online used car dealer Carvana, a leading e-commerce platform for buying used cars. VentureBeat reported that “Carvana paid $6.7 million in cash, according to an SEC filing, while also issuing shares with an aggregate value of $15.2 million, based on the previous two months’ average trading price. This puts the total acquisition price at around $22 million. The acquisition closed on April 12, 2018, according to the filing.”
As noted in the company’s acquisition news release, Carvana pioneered the 360-degree used vehicle digital tour more than five years ago, showcasing each car’s features and imperfections in high resolution, all powered by proprietary technology and patented photo studios. Car360 has taken the concept mobile, enabling app-based photo capture and even more immersive viewing capabilities.
“Carvana and Car360 both believe in the power of putting amazing technology in the hands of the customer so they can make one of the largest purchase decisions of their life with transparency and confidence,” said Carvana founder and CEO Ernie Garcia. “Bringing the Car360 team into the fold, we add even more entrepreneurial strength in computer vision, AR, and app-based photo capture. This technology unlocks a number of exciting capabilities that will further our mission to change the way people buy cars.”
At BIP Capital, we’re honored to have been a part of this Southeast-based innovation and its successful exit. Congratulations to the team at Car360 and the equally innovative team at Carvana. We look forward to finding the next opportunity using emerging technologies like augmented and virtual reality.