ForeverCar
Deal: $10 million Series A
Investors: The round was led by CMFG Ventures, the venture capital entity of CUNA Mutual Group, a provider of lending, insurance and wealth management products for credit unions. The round also included participation from KDWC Ventures, SAP Fieldglass CEO and founder Jai Shekhawat, and other unnamed existing investors. The transaction was managed by City Capital Advisors.
What they do: ForeverCar is a provider of car repair protection plans. Through their site, ForeverCar recommends the top three plans to a customer, and they can then view quotes and purchase plans online. If there is a breakdown, customers have access to a ForeverCar "Protectionator," essentially a repairs concierge, who will coordinate rental cars, towing, payment and communication with the repairs shop.
Other details: The startup was founded in 2011 and grew to 25 employees this year, according to Crain's. The funding will go to hiring, particularly with a focus on data science, as well as expanding transactions to additional parties, such as credit unions and banks, auto insurers, auto shopping portals and auto dealers. They were named a winner at the Chicago Innovation Awards this week.
“ForeverCar.com started with a simple vision — give consumers a transparent online experience for purchasing car repair coverage,” said Mark Hodes, CEO of ForeverCar.com in a statement. “We’ve taken our consumer-friendly model to another level by using algorithms to recommend coverage plans that meet the driving habits and budget needs of our customers. This latest investment allows us to significantly expand the capabilities of our marketplace, add critical expertise in high growth areas, expand our distribution and deliver on our core brand promise of an exceptional user experience.”
