Time to “Short” These Car Companies?

By Matthew Milner, on Wednesday, November 19, 2014

For most folks – aside from purchasing a home – buying or leasing a car is the single biggest financial transaction they’ll experience.

It can also be one of their most painful experiences…

In 2012 alone, the FTC reported 59,214 fraud reports related to car sales.

But a new company is attempting to stop the pain…

Today we’ll tell you about this intriguing new start-up, and then we’ll show you how you can invest in it.

The Company’s Name is Beepi.com

Beepi is an online marketplace…

It connects buyers and sellers of pre-owned cars – and it does it in a way that makes the experience pain-free and fun.  

Here’s how it works…

As a seller, once you sign up, Beepi handles everything

After sending certified “inspectors” to your door to test-drive your car and complete its 185-point inspection, they determine the car’s fair price.

No negotiation needed.

Then they take pictures of your car and find you a buyer.

Still not sold on the idea?

Here’s where it gets interesting…


Beepi guarantees that your car will sell within 30 days…

And guarantees it’ll sell for at least $1,000 more than you could get at a dealership.

If they can’t find a buyer at that price, Beepi will buy the car itself.

Meanwhile, from the buyer’s perspective, the experience is as easy as ordering in sushi or booking a hotel from your mobile phone…

Just find the car of your dreams and click “Buy.”

No negotiating needed, and Beepi handles all the paperwork on your behalf.

You can pay by direct debit or credit card, and if you need financing, they can set you up with that, too.

Once the car is delivered to you (with a big bow around it), you can give it a test drive...

If you don’t like it, Beepi offers a 10-day, no-questions-asked return policy.

If you return the car, Beepi takes it back – and the seller keeps 100% of their money.

So it’s a riskless transaction for both parties.

From Zero to $15,000,000

Beepi has blasted off the starting line like a race car…

In just six months, they’ve grown from zero revenue to $15 million.

Based on that growth rate (as well as their potential to crack the $370 billion annual used-car market), Beepi just raised $60 million from top-notch investors.

Investors include:

Shervin Pishevar – an early investor in homeruns like Uber…

Foundation Capital – a venture capital fund that’s backed disruptive companies like Netflix, Lending Club, and Motif

And Gil Penchina – a well-regarded angel who’s invested in winners like LinkedIn, Evite, and Indiegogo.

These investors believe people in their 20s and 30s will purchase a car just like they book their travel or order their food – with a few taps of their phone.

As Pishevar said, "Companies like Beepi and Uber are really tapping into a generation that use their phone as a remote control" for what they want.

Investors also like Beepi’s potential as a financial services opportunity:

CarMax (NYSE: KMX), a competitor with a nearly $12 billion market cap, generates one-third of their revenues from financing their customers’ purchases.

So in addition to making money by taking a share of each sale, Beepi plans to profit by creating its own financing division.

Investment Opportunity

Beepi.com is currently accepting investments from investors like you >>

To be clear, this is not a seed-stage investment opportunity…

This is a later-stage deal where the company already has momentum, and is laser-focused on taking down competitors like CarMax and AutoNation (NYSE: AN).

Hence the title of this article (Time to "Short" These Car Companies?)...

And hence the steep price of admission to Beepi:

Beepi is currently valued at about $200 million.

If that valuation doesn’t make your nose bleed, here are a few details:

  • You’ll be investing in the same round and on the same terms as professional venture investors like Redpoint Ventures and Foundation Capital.
  • You’ll be investing alongside Gil Penchina, as part of his $5 million AngelList Syndicate (click here to read more about AngelList Syndicates >>).
  • Gil is investing $25k of his own money, and in exchange for offering access to this coveted deal and running the syndicate, he’ll earn 20% of any profits. (That’s standard for venture deals.)
  • The minimum investment is $10,000.

Please note: Crowdability has no relationship with Beepi, AngelList, or Gil Penchina. Crowdability is an independent provider of education and research on the equity crowdfunding market.

Best Regards,
Matthew Milner
Matthew Milner


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Tags: Uber Lending Club Angellist Syndicates Redpoint Ventures Motif Gil Penchina Netflix

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