DALLAS, Sept. 24, 2015 /PRNewswire/ -- DriverUp, the first online marketplace for automotive financing, announced it closed a $20 million Series B round. The DriverUp marketplace gives accredited investors an opportunity to directly enter the $1 trillion auto lending industry and provides dealers with an expedited, streamlined credit process. New investor SF Capital Group led the round joined by existing investors Emerald Development Managers and RRE Ventures.
"This Series B round allows us to accelerate our product development, support added marketplace loan inventory and ramp up marketing efforts," said Sam Ellis, chief executive officer, DriverUp. "We have seen strong interest from accredited investors since launching, and are confident this round of funding will bolster DriverUp's ability to take the platform to new levels and reach a larger audience."
DriverUp also announced the appointment of Neil Wolfson to the company's Board of Directors. As president of SF Capital Group, Wolfson oversees all debt and equity investing, asset allocation, investment management and operations for a large multi-generational family office. He also serves on the Board of Directors for OnDeck Capital, BorrowersFirst, Patch of Land, TodayTix, Nextivity and FastPay.
"In a very short time, DriverUp has clearly demonstrated that their technology can fundamentally improve auto lending, similar to how we have seen FinTech disrupt other industries," said Neil Wolfson, president, SF Capital Group. "The auto-tech sector as a whole will continue to grow over the next few years as more stakeholders seek out efficient, platform-based auto finance options, and DriverUp is uniquely positioned to lead this charge."
DriverUp is the first company that offers auto loans as an investment opportunity to accredited investors such as hedge funds, endowments, family offices, and high net worth individuals. Previously, investing in this sector was limited to a handful of large institutions.
The DriverUp platform uses technology to fundamentally improve how loans are secured and serviced by creating a direct-to-investor option that until now has not existed within the auto-lending industry. Through DriverUp's proprietary software and advanced data analytics, the marketplace enables efficient processing and direct investment in auto loans, with full transparency and reporting.
DriverUp is a new online marketplace for automotive financing that enables investors – who previously did not have access – to directly participate in the growing, higher-yield business of auto lending and provides dealers with a streamlined credit application that speeds loans and moves cars. DriverUp's proprietary technology platform makes processing and buying loans quicker and easier. Rely on DriverUp's industry stature – more than 100 years of collective experience in automotive and consumer finance – for a direct connection to the business.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other legal authority. These include statements regarding the prospects for DriverUp. They are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and in many cases outside our control. Therefore, you should not rely on any of these forward-looking statements. This press release does not constitute an offer to sell securities or a solicitation of an offer to buy securities, nor shall there be any offer, solicitation, or sale of securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws; and unless so registered, the securities may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. An offer of the securities, if made, will only be made pursuant to an offering memorandum and related agreements and the securities will only be sold to accredited investors.