Award-winning car repair protection marketplace startup to expand presence in consumer and business markets
ForeverCar.com, the company that is transforming the way people buy and benefit from vehicle protection products, today announced that it closed a $10 million Series A financing round led by CMFG Ventures, the venture capital entity of CUNA Mutual Group, the leading provider of lending, insurance and wealth management products for credit unions.
In addition to CMFG Ventures, the round included participation from KDWC Ventures, SAP Fieldglass CEO and founder Jai Shekhawat, and other existing investors. The transaction was managed by City Capital Advisors.
With this new infusion of capital, ForeverCar.com is accelerating innovation and expanding its reach to power transactions for credit unions and banks, auto insurers, auto shopping portals and auto dealers.
“Financial and insurance industries are navigating exponential change in technology, competition and consumer needs, and we are looking for opportunities and investments that provide innovation and value to credit unions and their members,” said Brian Kaas, managing director at CMFG Ventures. “As we strengthen our ability to help credit unions deliver a better member experience, our investment in ForeverCar.com offers a strong example of how we are accomplishing that.”
“KDWC invests in innovative companies that disrupt mature industries with breakthrough technology,” said Bill Wolf, managing partner at KDWC Ventures. “ForeverCar.com’s focus on transparency and the customer experience is transforming a key part of the fintech landscape, and we’re thrilled to partner with them.”
City Capital Advisors managed the $10 million transaction. “It is a privilege to work with a truly disruptive growth company like ForeverCar.com, which is combining its innovative technology with outstanding customer service to transform an otherwise mundane industry,” said Nick Hurtgen, managing director at City Capital.
Analysis conducted earlier this year by PitchBook showed that Chicago-based startups offer the highest returns on venture capital investments among all innovation hubs in the United States. According to PitchBook, 45 percent of Chicago's exits over the past 10 years saw a 10x return.
“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. “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.”
As evidence of their innovation and contribution to Chicago’s growing technology community, ForeverCar.com was recognized this month with a prestigious Chicago Innovation Award. A total of 643 companies were nominated for this year’s awards, which celebrate Chicago as a hub of innovation. ForeverCar.com CEO Mark Hodes accepted the award at the 15th annual Chicago Innovation Awards ceremony on Oct. 25 at The Harris Theater in Chicago.
ForeverCar.com is a full-service provider of car repair protection plans that gives people complete and honest information, transforming the way people buy and benefit from extended car coverage. ForeverCar.com is the first online service to display quotes and enable purchasing of car repair protection plans, giving car owners full visibility into what’s covered. ForeverCar.com offers the most comprehensive coverage in the U.S., with many plan options providing plans similar to a manufacturer’s bumper-to-bumper warranty.
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