BestOffer.com's Second Round Financing Fueled by Leading Internet VC Firms
6 January 2000
BestOffer.com's Second Round Financing Fueled by Leading Internet VC Firms
Internet Visionaries Endorse Unique Approach to Used Car Marketplace
SAN FRANCISCO, Jan. 6 -- BestOffer.com, the better way to buy
and sell used cars, today announced that its second round of financing has
successfully attracted $15 million from three of the nation's leading consumer
Internet venture capital firms. Leading this round of financing were Bessemer
Venture Partners and idealab Capital Partners (ICP). Draper Fisher Jurvetson,
which led the company's first round investment, renewed their support in this
round.
The three firms' portfolios hold some of the most successful names in
e-commerce. Bessemer Venture Partners' portfolio includes eToys, BabyCenter
and furniture.com; ICP has supported CarsDirect.com, MP3.com, and NetZero; and
Draper Fisher Jurvetson has fueled the success of GoTo.com, Fogdog Sports, and
NetZero.
"The high quality of these investors is a great endorsement of our vision
of transforming the used car market," said CEO Pratap Mukherjee, "This new
capital will help us reach consumer audiences and expand operations in several
key markets during the first half of 2000."
BestOffer.com combines online technology with off-line automotive
expertise, quality assurance, and friendly customer service to create a
complete solution for buyers and sellers of used cars. BestOffer.com guides
customers through every step of the process of buying or selling a used car
with its unique online auction marketplace, unbiased vehicle inspections,
convenient test drives, comprehensive research and information tools, and
assistance in securing financing, insurance, and after-market warranties.
Joanna Strober of Bessemer Venture Partners reflected on their decision to
lead this round of financing for BestOffer.com, "The used car business is a
notoriously inefficient market. We're impressed with the vision BestOffer.com
has focused on, building the first good alternative for used car buyers and
sellers. With BestOffer.com, both sides can get what they want most -- a fair
price without haggling, hassles, uncertainty, and risk."
Bill Gross of idealab Capital Partners is similarly enthusiastic about
BestOffer.com. "ICP focuses on companies that are working to transform
markets," he said, "We support CarsDirect's visionary effort to improve the
process of buying a new car. BestOffer.com's unique combination of online
technology with off-line quality assurance and customer service promises to
provide a similarly innovative solution for buyers and sellers of used cars."
Warren Packard of Draper Fisher Jurvetson stated his firm's reasoning for
continuing support of BestOffer.com. "We were initially impressed with
BestOffer.com's vision of creating a better way to buy and sell used cars," he
said, "Since then, they've assembled a world class management team of auto
industry, marketing, and technology professionals, formed partnerships with
key players in the automotive industry, and attracted great consumer interest
to build their inventory. We did not hesitate to back up our initial support
with significant investment in this second round."
BestOffer.com is currently in the midst of a "Free for All" preview,
offering their services completely free-of-charge through the end of January.
After establishing itself as the market leader in the San Francisco Bay Area
during the first quarter of 2000, BestOffer.com will expand throughout the
year 2000 to major metropolitan areas nationwide.
Bessemer Venture Partners is a private venture capital firm that carries
on one of the longest-standing venture capital activities in the country.
Early this century, Bessemer helped establish such companies as W.R. Grace,
International Paper, and Ingersoll-Rand. Today, Bessemer Venture Partners
invests approximately $150 million each year, primarily in early stage
communications and web-based businesses out of investment offices in Menlo
Park, Boston and New York. Its portfolio includes eToys, BabyCenter,
MotherNature.com and furniture.com.
idealab Capital Partners (ICP) is a family of venture capital funds
focused on Internet commerce and other early stage Internet companies, along
with opportunistic investments in later stage, high growth Internet firms. ICP
has over $450 million under management and has seed invested in dozens of
internet companies -- including NetZero, eToys, GoTo.com, CarsDirect.com,
MP3.com, EMusic.com, Tickets.com, Petsmart.com, and Cooking.com.
Draper Fisher Jurvetson is a leader in start-up venture capital, having
invested in over 150 high-tech companies. In the majority of cases, they are
the lead investor for a company's first round of financing. They focus on
information technology businesses with enormous market potential. By pursuing
a people-focused approach to venture capital investing, they fund
entrepreneurs with the energy, vision, experience, and desire to build great
companies including Fogdog Sports, GoTo.com, and NetZero.
About BestOffer.com
BestOffer.com is a better way to buy or sell a used car. Only
BestOffer.com combines online technology with off-line automotive expertise,
quality assurance and friendly customer service to create a complete solution
for consumers, creating a better way to buy or sell a used car.