SAN FRANCISCO — Shift, a startup that combines technology and a team of car concierges to take the hassle and guesswork out of buying and selling used cars, has raised a $38 million Series C financing led by BMW iVentures, with new investors DCM Ventures and G2VP. Previous investors DFJ, Highland Capital, and Goldman Sachs Investment Partners also participated in the round.
Shift has quickly become a 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.
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 $23 million in its Series A round, led by DFJ and Highland Capital, and $50 million 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.
“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.”