11:10 am, October 24, 2023
Online car marketplace Carwow is launching a crowdfunding campaign to back its growth plans.
The initiative will give people the chance to own a stake in the business and will take place via equity crowdfunding platform Crowdcube, with investments pitched from around £10.
The money will be used to accelerate its product development strategy as it aims to become the go-to destination for car-changing.
It’s the second time that Carwow has partnered with Crowdcube. In 2019, it raised £4.9m from 7,967 investors, hitting the £2m target in under an hour.
Carwow CEO John Veichmanis, pictured, said: ‘We want to crowdfund to help bring the full Carwow experience to more motorists in our current markets.
‘Car-changing is more than just a transaction – it’s something that millions of people experience every year.
‘One in every two people in our markets owns a car, and 20 million people change cars every single year.
‘There’s a huge opportunity for us to become the go-to destination for car-changing across all our markets.’
He added: ‘Right now, we know that for nearly one in two of us, buying or selling a car is an actively stressful process.
‘With a car market flooded with over 40 brands, 7,500 models and a multitude of fuel options and specifications, making a confident choice can feel very overwhelming.
‘Changing your car should be exciting, full of inspiration and anticipation. We want to drive total car confidence by making it easy and hassle-free for drivers but also for the amazing dealers and car brands we work with.
‘Our community is part of everything we do, so I’m thrilled to be able to offer another chance for ownership in Carwow, so we can make buying and selling cars even better for everyone.’
Pre-registration opens today, and it’ll go live on Tuesday, November 7.
Carwow says it’s responsible for one in 10 of all new cars registered privately in the UK. It has offices in the UK, Germany, Spain and Portugal, with a combined team of 370 people.
Matt Cooper, co-CEO of Crowdcube, said: ‘Carwow’s previous raise ranked among our top 20 most popular campaigns of all time, so we’re absolutely delighted to welcome them back.
‘We love working with growth-stage companies and are excited to provide their loyal and extensive community across Europe with the chance to support their journey.’
Carwow added car-selling capabilities to its UK offering in 2021, letting drivers sell their old cars directly back to its 3,000-plus dealer partners.
To date, it has raised $157m (circa £128m) from venture capital investors including Accel, Balderton, Episode 1 and Vitruvian, as well as automotive names including Volvo and Mercedes.
Legal disclaimer: Don’t invest unless you’re prepared to lose all the money you put in. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Carwow’s marketing communication was approved as a financial promotion by Crowdcube Capital Ltd (FCA no. 650205) on October 18, 2023.
