British automotive marketplace, CarWow is encouraging dealers and customers to invest in its online automotive platform through a crowdfunding scheme to be launched at the end of September.
CarWow announced in August that it had secured £25 million ($31 million U.S.) in a funding round led by Daimler to fund further growth. The new funding will be used to “deepen its presence in Europe by investing in talent, product development and marketing”.
The crowdfunding initiative will allow investors to buy a stake in CarWow at the same valuation as Daimler paid to invest in the company.
CarWow will see competition ramped up with the launch of Cazoo in November. Cazoo recently announced a further £25 million of investment agreed, taking the total it has secured to £55 million ahead of its launch. This has helped it invest in a strong management team.
It will be operated through Crowdcube and customers and dealers will be able to invest as little as £10 ($12 U.S.). There will be various tiered options for shareholders to choose from and to receive exclusive shareholder rewards.
So far, CarWow has raised £55 million from VC’s including Accel, Balderton and Vitruvian. This has helped fund new businesses in Spain and Germany with plans to launch in other countries in the future.
It says that more than £5 billion worth of cars have been purchased on its site since it launched. It says one in 20 new cars in the U.K. are currently sold through its platform.