Yuri Milner, the Russian internet investor, and Scott Bommer, founder of the hedge fund SAB Capital, contributed a total of $8 million. Milner’s involvement could be seen as a move to give his firm, DST, a good shot at leading a potential large future investment in Beepi. Another $2.7 million came from a syndicate of tech industry angel investors on AngelList organized by the early-stage investor Gil Penchina. It’s the largest investment made by an AngelList syndicate since the platform was founded in 2010.
The new funds are essentially an add-on to Beepi’s $60 million Series B investment announced in October. Resnik said the new investment came with the same terms as the $60 million round, which valued the company at about $200 million. Beepi’s service, which just launched publicly in April, lets car owners enter inbasic information about a vehicle they want to sell and then gives them a quote that Beepi says will always be higher than dealer trade-in prices. If the seller agrees to the quote, Beepi sends out its own inspector to clear the car for listing on the site. If a buyer doesn’t purchase the car within 30 days, Beepi says it will buy the car itself.
Resnik said he was interested in working with an AngelList syndicate because he’s a big supporter of crowdfunded investments for young companies, and hoped this would encourage more startups to look to AngelList for
Penchina, the former CEO of Wikia.com and a veteran of eBay, said he sees in Beepi the potential of making buying and selling a car online as easy as much less expensive transactions.