A new startup from Chicago entrepreneur Pat Ryan wants to arm car buyers with all the information they need to find the best deal on a vehicle.
CoPilot, created in 2018, is a mobile app that uses machine learning and human experts to help buyers find the best price on a new or nearly new vehicle. The startup announced Thursday that it raised a $10 million Series A round led by Austin-based Next Coast Ventures. Other backers include SciFi ventures, the VC firm from PayPal co-founder Max Levchin, along with Accel Partners co-founder Arthur Patterson and Chicago Ventures.
CoPilot, which has 18 employees in offices in Chicago, Austin and San Francisco, has raised a total of $17 million to date.
The startup is built on top of a data platform first developed at Ryan's previous business, MAX Digital, which created software for the auto industry. With CoPilot, the startup says it's bringing shoppers an "expert in their pocket" when buying a car. The app helps users through all stages of the buying process, from finding the right vehicle, searching nearby dealerships for the lowest price, and giving shoppers all the information they need to make a purchase.
Ryan said CoPilot differentiates itself from other digital car-buying tools in that it doesn't take commissions from car dealers, allowing it to operate as a truly independent resource for finding the best deal on a vehicle. CoPilot makes money by connecting buyers to car insurers, and taking a cut of that transaction.
Ultimately, the startup aims to simplify the buying process and greatly reduce the amount of time it takes for someone to search for and purchase a car.
"The first hour of looking for a car is fun. The next 22 are a grind," Ryan said. "We take all that grind out, and all that insecurity and apprehension people feel."
The app searches all dealerships in your area to find the best price on a vehicle so you don't have to haggle with a salesperson. But if you're the haggling type, Ryan said CoPilot can equip you with the information you need to strike the best deal. For example, if you're at a dealership in Chicago, CoPilot can find you the same vehicle at a lower price in Milwaukee, which buyers can use as leverage to get the price down. The app uses human "copilots," in addition to its data platform, to get people the car they're looking for.
"Consumers love having someone they can go to who’s an expert, who’s on their side," Ryan said. "If you're a consumer who doesn't know much (about cars), that's intimidating ... We help you buy with confidence."
Ryan is a serial entrepreneur and veteran of Chicago's tech scene. He co-founded Chicago Ventures and helped launch the Garage, a startup incubator at Northwestern University.
With CoPilot, Ryan believes he can help people with big-ticket purchases beyond automobiles. The startup is also eyeing the home buying market, Ryan said.
