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Champ Titles Raised $18M from Point72 Ventures
Champ Titles Raised $18M from Point72 Ventures

Architect Partners was the exclusive Financial Advisor to Champ Titles.

Transaction Overview

On March 27, 2024, Cleveland-based digital title and registration platform Champ Titles announced an $18 million Series C equity round led by Point72 Ventures with participation by existing investors.

Company Description

Champ Titles provides a digital title and registration suite to streamline the vehicle titling process. Their platform enables the creation of legal, digital titles for easy transfer and verification, serving insurance carriers, lenders, state governments, auto dealers, and owners. Stakeholders, including state motor vehicle departments, lenders, and vehicle owners, benefit from a unified and transparent system, where all information is readily accessible and transaction times are markedly reduced. The governance of the digital platform is established through clear guidelines, ensuring all parties adhere to the updated processes and regulations.

Champ Titles’ success is measured by the elimination of more than 5 million pieces of paper annually on average per state; a reduction in processing time from 40-60 days to a matter of hours; increased productivity of DMV title clerks processing more than five times as many titles per day; and the improved experience for consumers in each state that has adopted Champ Titles’ solutions. Over the last twelve months, the company has successfully onboarded new states including New Jersey, Kentucky, and Illinois, and expanded its relationship with West Virginia by creating the first National Digital Titling Clearinghouse (NDTC). Through these efforts, the company has grown rapidly with revenue increasing by more than 300% year over year. 

Founded in 2018 by CEO, Shane Bigelow, the company now has 63 employees and is headquartered in Cleveland, Ohio. 

Funding

In this Series C funding round, Champ Titles raised $18M from Point72 Ventures and existing investors including W.R. Berkley Corporation, Eos Venture Partners, Guidewire Software, and Rev1 Ventures, bringing the total amount raised since inception to $45M. 

In the prior Series B round, Champ Titles raised $13M from Guidewire Software, Eos Venture Partners, and Ally Ventures.

Before that, Champ Titles raised $13.5M in 2021 in a Series A. Emergents, now Architect Partners, served as the exclusive Financial Advisor for that financing. 

Competition

Champ Titles’ biggest competitors are existing state DMVs deciding to be a software company and developing solutions on their own or via large systems developers.  However, they also compete with other digital title networks such as Cario and Oxhead Alpha/Tezos. In addition, technology-enabled DMV solutions such as Fast Enterprises are seen as competitive but don’t offer the same efficacy.

 

Architect Partners’ Perspective

Champ Titles’ SaaS-based solutions present a compelling example of blockchain-enabled infrastructure solving real-world problems.  By focusing on the needs and pain points of legacy auto title, registration, and lien processing, Champ has leveraged the power of blockchain to transform critical government services.  The result is exponentially accelerated processing time for DMV constituents, with improved accuracy and reduced cost.  Yet Champ’s solutions capture many key benefits of on-chain data processing – which include trust, transparency, data integrity, security, and efficiency – without users even being aware of their blockchain foundations.  

While much attention is focused on recent resilience in crypto asset prices, we believe 2024 will see significant growth in non-speculative enterprise applications for distributed ledger technology.  Champ’s successful raise demonstrates investor interest in practical and scalable solutions to real-world problems.

Netgear Acquires Avaak

On July 26, 2012, Netgear (NASDAQ: NTGR, market cap: $1.3b) announced the acquisition of Avaak, Inc. Architect Partners was the financial advisor to Avaak on this transaction.

[Note: In August 2018, Netgear spun out Arlo Technologies, based on the Avaak product and cloud services. At that time Arlo reported 2.2 million registered users. Services represented 8% of revenues and growing. Arlo had a market cap of almost $2 billion at launch.]

Avaak develops and markets wireless products for the smart home market. Avaak’s flagship product line is the VueZone™ home video monitoring system, featuring the only completely wire-free IP cameras on the market. The VueZone system includes a gateway unit, small wire-free (no networking or power cables required) cameras and a mobile application for viewing video on smartphones or tablets. Users can view their cameras via the mobile app or a browser, receive motion detection alerts, record and share video with others. VueZone is sold through the company’s web site and Amazon, and customers must sign up for a subscription service to watch video on mobile devices. Competitors include Dropcam, iControl, Logitech’s WiLife, Xanboo (acquired by AT&T;), Motorola’s 4Home and Comcast’s and Verizon’s newly-introduced home networking offerings.

This transaction rides two major trends: growing interest in SaaS business models (even for network-connected hardware vendors), and increasing use of video for sharing, monitoring and collaboration.

This deal underscores how the fast-growing smart home sector is attracting quite a bit of interest from consumer electronics manufacturers, security vendors and communications service providers.

Expanding retail distribution can be quite costly, and startups like Avaak frequently turn to large partners/acquirers to reach mass markets.

Netgear’s main business is in wireless routers. This is a very competitive business, and Netgear is working to differentiate its offerings with leading edge WiFi routers, network attached storage products, video solutions and other innovations and to create new revenue streams by launching services.