Clutch has successfully raised significant funding over multiple rounds, attracting a diverse group of investors. The platform offers a unique solution designed to streamline and enhance user experiences.
Continue reading to delve into the details of Clutch's fundraising journey and the investors who believe in its potential.
What Is Clutch?
Clutch, founded in 2017, is based in Toronto, Canada. The company was established by Dan Park and Steve Tam.
Clutch specializes in providing a seamless online car-buying experience, allowing users to purchase vehicles entirely online.
With a team of over 100 employees, Clutch continues to innovate in the automotive e-commerce space.
How Much Funding Has Clutch Raised?
- Seed Round
- Amount Raised: $1,500,000
- Date: December 2016
- Motivation Behind the Round: To validate the business idea, build a prototype, and attract initial customers.
- Seed Round
- Amount Raised: $7,000,000 CAD
- Date: April 2020
- Lead Investors: Real Ventures
- Motivation Behind the Round: To scale Clutch's business operations in Toronto and Halifax, grow its team, and explore additional markets.
- Series A Round
- Amount Raised: $60,000,000
- Date: March 2021
- Lead Investors: Caanan Partners (equity), Upper90 (debt)
- Valuation at Round: Approximately $100 million
- Motivation Behind the Round: To expand Clutch's online car retailer platform across Canada and enhance the online car purchase experience.
Total Amount Raised: $68,500,000 USD
Current Valuation: Approximately $100 million
Key Investors
- Canaan Partners
- Details: Canaan Partners is a venture capital firm that invests in early-stage technology companies. They have been early backers of successful companies like Instacart and Turo.
- Investment Focus Areas: E-commerce, carsharing, technology startups
- Notable Investments: Instacart, Turo, LendingClub
- Upper90
- Details: Upper90 is a hybrid investment firm that provides both debt and equity financing to growth-stage companies. They participated in Clutch's Series A round.
- Investment Focus Areas: Technology, growth-stage companies, fintech
- Notable Investments: Thrasio, Clearbanc, Octane
- Real Ventures
- Details: Real Ventures is a Canadian venture capital firm that focuses on early-stage investments. Janet Bannister, managing partner of Real Ventures, joined Clutch’s board of directors.
- Investment Focus Areas: Early-stage technology startups, digital media, software
- Notable Investments: Kijiji.ca, Breather, League
- BrandProject
- Details: BrandProject is a venture capital firm that invests in consumer brands and technology startups. They have been a previous investor in Clutch.
- Investment Focus Areas: Consumer brands, technology, e-commerce
- Notable Investments: Freshly, Daily Harvest, PetPlate
- Global Founders Capital
- Details: Global Founders Capital is a global venture capital firm that invests in technology companies at various stages. They have been involved in multiple funding rounds for Clutch.
- Investment Focus Areas: Technology, internet, software
- Notable Investments: Facebook, LinkedIn, Slack
What's Next for Clutch?
Clutch is poised to capitalize on the growing trend of online car purchases, with plans to expand its platform across Canada. The company aims to launch in new cities, leveraging its strong momentum and increased revenue to capture more market share. This expansion presents a significant opportunity, as the online car retailing space continues to grow.
Future fundraising efforts are likely, given Clutch's rapid growth and the involvement of high-profile investors. These additional funds will support further expansion and scaling efforts. However, Clutch may face challenges such as competition from other online car retailers and traditional dealerships, as well as operational hurdles in maintaining service quality while scaling up.
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