AutoLeadStar, an artificial intelligence-powered marketing platform for the automotive industry, raised $40 million in a series C financing round led by Riverwood Capital.
The startup's software provides personalized marketing, digital commerce and consumer engagement for car dealerships and manufacturers to help them digitize their business and reach new customers. The venture is headquartered between Miami and Jerusalem, Israel and has 40 employees based in the United States.
"Car dealerships are massive drivers of economic growth and value in communities, and especially given the current economic climate, we are proud to be helping dealerships succeed in the digital era," AutoLeadStar co-founder and CEO Aharon Horwitz said.
AutoLeadStar reports its software is used by about 1,000 dealerships across North America. And there's potential for growth as more people purchase vehicles online. Nearly 30% of new car sales in the U.S. were completed online in 2021, a trend that accelerated during the Covid-19 pandemic. Online used car sales are also booming.
The company was founded in 2016 by CEO Aharon Horwitz, CTO Yishai Goldstein and Chief Product Officer Eliav Moshe. Although it maintains an office in Brickell, AutoLeadStar is a remote-first venture. The firm periodically hosts company meetups in Miami, including a second quarter event this year held at The Lab in Wynwood.
The startup will increase its customer success and support teams with the new funding, VP of marketing Ilana Shabtay told the Business Journal.
Riverwood Capital co-founder and managing partner Francisco Alvarez-Demalde said AutoLeadStar's software can power marketing campaigns that increase sales and productivity for car dealerships and manufacturers.
"[The founders] have built a company that is anchored by a world class product platform and go-to-market team, and by a relentless focus on customer success and quality thus delivering tremendous growth and world class software metrics," he added.
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