Shift Raises $38M in Series C Funding Led by BMW iVentures
Company has raised more than $110 Million Total, Funding Will Be Used to Invest in Technology, Grow Team & Enter New Markets
SAN FRANCISCO, July 19, 2017 /PRNewswire/ -- Shift (shift.com), a San Francisco-based startup that combines technology and a team of car concierges to take the hassle and guesswork out of buying and selling pre-owned cars, today announced that it has raised a $38M Series C financing led by BMW iVentures, with participation from new major investors DCM Ventures and G2VP, as well as continued participation from DFJ, Highland Capital, and Goldman Sachs Investment Partners. Christian Noske, a partner at BMW iVentures, has joined the Shift Board of Directors. Jason Krikorian from DCM and Brook Porter from G2VP have joined as Board Observers.
Shift has quickly become the leading seller of pre-owned cars in the San Francisco Bay Area and Los Angeles, due in large part to its success with millennials. More than 50% of Shift's customers and 70% of buyers who receive a loan are between the ages of 18 to 35. With younger buyers continuing to show changing expectations in car buying, Shift is eager to expand the availability of its technology to new markets to deliver unmatched value (free on-demand test drives, fully digital lending origination, on-site appraisals, trade-ins, and car pick-ups) to buyers and sellers.
"We are interested in technology companies that challenge the status quo and build products that help improve transportation options for consumers," said BMW iVentures Partner Christian Noske. "Buying a car is one of the most expensive purchases most people ever make and we appreciate that Shift is committed to making this experience not just good, but great. It is obvious that with Shift's proprietary technology, world-class team of engineers, and forward-thinking workforce, the company is set to become a leader in the used car market."
"BMW is, without a doubt, one of the most iconic car brands in the world, which truly makes this a pinch-me moment for the entire Shift team," said Shift Founder and CEO George Arison. "We are also honored to have DCM and G2VP join us with such significant participation in this round. Over the past two years, we have improved and adjusted our model with the same mission in mind: to provide customers with a better car buying experience by providing an unprecedented level of transparency and test drives delivered to their door. We could not ask for a better partners than BMW iVentures, G2VP, and DCM."
"Shift is reimagining the used car buying and selling experience from the ground up, and it is resonating with customers. Shift's NPS consistently exceeds that of Apple & Amazon, and annual car sales have grown 20x since we first invested," said DCM Ventures Partner Jason Krikorian. "As investors since the Series A, we have seen Shift iterate, scale their model, and expand their product offerings to address the full needs of the used car market. We are excited to meaningfully increase our investment in the latest financing round."
"We believe the digitization of the used car marketplace is inevitable, and Shift is uniquely poised to succeed, providing critical differentiation in a fragmented market," said G2VP Partner Brook Porter. "The current car dealership model is a poor customer experience that also poses significant challenges for automotive OEMs. Shift is improving the supply chain efficiency of the used-car marketplace. This provides not only economic gains but also improved resource efficiency – the lowest impact vehicle is one that doesn't have to get built. We look forward to working with the Shift team and the rest of the board, and could not have asked for a better first investment."
With this latest round of funding, Shift will focus on investing in additional technology, growing its team, and entering new markets. Shift has raised more than $110 million in total funding, with $23M in its Series A round, led by DFJ and Highland Capital, and $50M in Series B financing, led by Goldman Sachs Investment Partners. The company currently operates in the San Francisco Bay Area and the Los Angeles and San Diego regions. Shift also has an engineering hub in Washington, DC.
About Shift Shift is evolving the car buying experience by pairing a technology-first approach with superior customer service. With Shift, one of our friendly car enthusiasts will work with you, whether it's bringing a test drive to your door or providing an instant appraisal for the car you want to sell. Our end goal? To build a more trustworthy marketplace that makes it really simple to buy, own, and sell the cars that make life go.
About BMW iVentures BMW iVentures, BMW's EUR 500 Mio venture capital fund, invests money and resources in startups the fields of autonomous driving, digital car and automotive cloud, e-mobility, artificial Intelligence and data, industry 4.0, shared and on-demand mobility, customer digital life, and energy services. The firm has already partnered with innovative companies such as Carbon3D, Chargepoint, JustPark, Life360, Moovit, Nauto, Scoop, Stratim, Turo and Zendrive. BMW iVentures invests in all stages from seed and incubation to growth companies.
About DCM DCM Ventures is an early stage venture capital firm based in Silicon Valley, Beijing, and Tokyo with more than $3 billion under management. DCM Ventures has invested in more than 200 technology companies across the United States and Asia, and provides hands-on operational guidance and a global network of business and financial resources. DCM Ventures has backed industry leading companies including 51job, 51Talk, 58.com, About.com (Acquired by The NY Times Company), BitAuto, Clearwire, Dangdang, eDreams, Fortinet, Happy Elements, Kabu.com, Kakao Talk, Renren, SandForce (Acquired by LSI), Sling Media (Acquired by EchoStar), SMIC, StarFlyer, Tuniu, VanceInfo and Vipshop. DCM also invested in exciting, up and coming startups such as Bill.com, DerbySoft, DXY, Eaze.com, FiveStars, FreedomPop, Freee, FuboTV, FXiaoke, Kuaishou, Musical.ly, Sansan, Sofi, TanTan, Ucloud, and YouXinpai.
About G2VP G2VP is a venture capital firm that invests in exceptional companies applying emerging technologies to traditional industries in novel, sustainable ways. With a thesis formulated around the multi-trillion-dollar digitization of industry trend and a model that supports new opportunities for value creation, economic and employment growth, and sector disruption, G2VP works with innovative pioneers in the fields of transportation, agriculture, manufacturing, logistics, and energy. In addition to the G2VP fund, the G2VP Partners manage Kleiner Perkins Caufield & Byers' $1 billion Green Growth Fund. Visit us at http://www.g2vp.com/.