DriverUp

About DriverUp

DriverUp operated as an online marketplace for automotive financing, originating from its parent company, Sierra Auto Finance. The company was founded in 2015 by auto finance veteran Samuel Ellis and was headquartered in Austin, Texas. DriverUp's platform was engineered to open up the auto lending market, a sector valued at over $1 trillion, to a broader range of accredited investors. Previously, direct investment in this asset class was largely restricted to a handful of major institutions.

The business model centered on providing a direct-to-investor channel for auto loans. The company's clients were primarily accredited investors, such as hedge funds, family offices, endowments, and high-net-worth individuals, who could directly purchase and invest in auto loans through the platform. For auto dealers, DriverUp offered an expedited and streamlined credit application process, which helped them sell vehicles more quickly and provided consumers with greater access to credit. Revenue was generated by facilitating these transactions on the marketplace. The platform utilized proprietary software and data analytics to enable efficient loan processing, servicing, and direct investment, with an emphasis on transparency and detailed reporting.

DriverUp achieved notable early traction, securing a $50 million Series A funding round at its launch in February 2015, led by RRE Ventures and Emerald Development Managers. This was followed by a $20 million Series B round in September 2015, led by new investor SF Capital Group, which brought the total funding to $70 million. Despite this initial success and its approach to transforming the auto lending industry, the company is now reported as being deadpooled. The founder, Samuel Ellis, subsequently formed another venture in the auto finance space called Auto Experience Inc. in 2018.