TrueCar, a US-based publisher of vehicle transaction data, has raised $200m in debt and equity, in part from corporate investors Guthy-Renker, a US-based direct marketing company, DealerTrack Holdings, a US-based car credit network and United Services Automobile Association, a car credit company .
The financing was intended to be ahead of an initial public offering next year, news provider Reuters said.
TrueCar also received backing from McCombs Family Partners, the family office of US businessman Red McCombs, as well as venture firms GSV Capital Corp and GRP Partners as well as financial investors Passport Capital, International Investment House and Allen & Company and Capricorn Investment Group. Debt was provided by Silicon Valley Bank.
Boris Shimanovsky, president of GR Match, the Guthy-Renker affiliate investing, said: "We believe that TrueCar represents one of the most compelling value propositions for consumers that are in the market to buy a new car. In addition to producing all direct response commercials for TrueCar which are scheduled to start airing in October, we were thrilled to align our interests further by investing in the company."
TrueCar said it worked closely with Allen & Company as its financial adviser and used Wilson Sonsini Goodrich and Rosati for legal counsel on corporate matters. TrueCar used a private investor portal on financial website SharesPost as part of the financing, it said. The company was started in 2005 and had been profitable since 2009, it added.
In July 2010, TrueCar raised $35.5m in debt and equity from United Services Automobile Association, a car credit company and financial investors Capricorn Investment Group, GRP Partners and Silicon Valley Bank. The company received $2.8m in 2008 in its first funding round, according to news provider PE Hub.