iMotors.com Leading Online Used Car Retailer Raises $57 Million in Fourth Round Funding; New Investment to Fuel National Expansion, Respond to Increasing Customer Demand
21 October 1999
iMotors.com Leading Online Used Car Retailer Raises $57 Million in Fourth Round Funding; New Investment to Fuel National Expansion, Respond to Increasing Customer Demand
SAN FRANCISCO Oct. 21, 1999--iMotors.com, the leading online retailer of pre-owned vehicles, today announced it has received $57.7 million in its fourth round of funding. The backing came from previous investors Global Retail Partners, Oak Investment Partners, Trinity Ventures, and Vulcan Ventures as well as two new partners, MeriTech Capital Partners and Moore Capital Management. Collectively, these firms represent investments in other top companies like BabyCenter (acquired by eToys), Beyond.com, CitySearch, CNET, drugstore.com, eToys, Exodus, GoTo.com, Inktomi, InterWorld, iVillage, NextCard, Starbucks, and TheStreet.comiMotors.com will use the funding to expand its West Coast operations, lay the groundwork for an East Coast expansion early next year, and fuel market-building efforts nationwide, said CEO Adam Simms.
"This level of financing validates our vision and underscores the soundness of our business plan," Simms said. "We're the only online auto company that is fully accountable to the customer by guaranteeing selection, price and quality. Buying a pre-owned car is never going to be the same again."
iMotors.com allows shoppers to order the specific pre-owned car they desire from the iMotors.com web site. iMotors.com carries no inventory and will find the exact car mileage, options, color that the consumer selects. The pre-owned autos are reconditioned at the iMotors.com Vehicle Conditioning Center, and come with a money-back guarantee and a warranty.
"We've been investors in iMotors since day one and our participation in this latest round is another vote of confidence in the iMotors business model," said Steve Lebow, Co-founder and Chairman at Global Retail Partners. "The used car market is a $350 Billion industry and only iMotors has figured out a winning combination of infrastructure, technology, and Internet to command a sizable piece of it."
Jerry Gallagher of Oak Investment Partners is likewise enthusiastic about iMotors. "iMotors has assembled a top management team of auto industry, consumer, and e-commerce professionals to execute on a proven concept," he said. "iMotors delivers what consumers want -- an alternative to the existing online or offline used car-buying process."
iMotors.com lets consumers buy a pre-owned car on the Internet the way they would buy a new car. Unlike other online services that act as referral sites for dealer networks or individual sellers, iMotors.com is a direct-to-customer company offering unlimited selection and absolute accountability.
About iMotors.com
iMotors.com was launched in September 1999 as the Internet's first real e-commerce auto company, allowing customers to order pre-owned vehicles entirely online. iMotors.com is a privately held company, backed by a renowned group of investors with successful track records at leading land-based retail and internet/e-commerce businesses. Investors include Global Retail Partners (an e-commerce investment fund of Donaldson, Lufkin & Jenrette), Moore Capital Management, MeriTech Capital Partners, Oak Investment Partners, Rosewood Capital, Trinity Ventures, and Vulcan Ventures. For additional information, visit www.imotors.com or call 877-6IMOTORS (646-6867).
About MeriTech Capital Partners
MeriTech Capital is a $1 billion venture fund founded by four prominent venture capital firms: Accel Partners, Brentwood Venture Capital, Oak Investment Partners, and Worldview Technology Partners. MeriTech's charter is to provide late-stage capital to emerging technology companies.
About Moore Capital Management, Inc.
Moore Capital Management, Inc. is an investment management group with several billion dollars under management. Its private equity activities have included investments in GoTo.com, iVillage, NextCard, RoweCom and eToys.
About Oak Investment Partners
Oak Investment Partners is a venture capital organization that is focused on Internet related investment opportunities. Founded in 1978, there have been nine Oak Funds with total committed capital in excess of $2.6 billion. Representative investments include Bolt.com, CyberSafe, Exodus, eStyle, Flooz, Garden.com, HomePortfolio, iMotors.com, Inktomi, Kozmo, Media Metrix, Office Depot, PETsMART, P.F. Chang's China Bistro, Qpass, TheStreet.com, Ulta, Whole Foods and Zany Brainy.
About Trinity Ventures
Trinity Ventures, based in Menlo Park, CA, manages over $600 million in venture capital. The firm focuses in early stage investing in electronic commerce, communications and software. Some of Trinity's e-commerce related investments include NextCard (NXCD); Quokka Sports (QKKA); FatBrain.com (FATB); BabyCenter, acquired by eToys (ETYS); Della & James; 800.com; Internet Diamonds; FitLinxx; and 24/7 Media (TFSM). For additional information, please visit the Trinity Ventures website at www.trinityventures.com
About Vulcan Ventures
New-media investor Paul G. Allen founded Vulcan Ventures Inc., of Bellevue, Wash., in 1986 to research and implement his investments. Through Vulcan Ventures, Allen invests in companies that offer products, services or technologies that fit his wired world strategy, and can contribute to or benefit from the technology and strategy of other Paul Allen companies. William D. Savoy is president of Vulcan Ventures and represents Allen in his professional and personal financial transactions as well as managing the Vulcan analysts who investigate and secure investment opportunities. Allen remains chairman of Vulcan.
About Global Retail Partners
Global Retail Partners is a specialty fund within Donaldson, Lufkin & Jenrette's Merchant Banking Group focused on venture investments in global retailing and electronic commerce. Investments include CitySearch, GoTo.com, Beyond.com, Homestead.com, CyberSource, Interworld and P.F.Chang's China Bistro.