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. 


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. 


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.

Crypto Public Companies Snapshot

Crypto Public Companies Snapshot

Glenn Gottlieb
February 2, 2024

News on Macro Economic Data


Headline economic news continues to be positive, yet the underlying detail presents a puzzle.  Non-farm payrolls boasted a remarkable surge of 353K.  The government also reported wages increased above the inflation rate and labor participation remained stable.  These numbers seemingly support a very healthy economy, potentially delaying the discussion of Fed rate cuts.


Contrastingly, this optimism is challenged by conflicting data to the announced jobs report, including the Jolts report, reports of corporate downsizings, the ADP report, and the household survey.  There is also a question about the quality of jobs and the number of multiple job holders.  Despite the report touting an increase in hourly wages, hours worked declined to a very low 34.1, weekly earnings have declined, and tax revenue fell 2%. 


Adding to the uncertainty, Fed watchers noted that Chairman Powell deleted an entire paragraph highlighting the strength of the US banking system.  This raises questions about the reasoning.  Some have speculated it is due to a potential crisis with regional banks.  Howard Lutnick of Cater Fitzgerald has warned that up to $700B in commercial real estate loans could default, adding a layer to the complexity of the economic narrative, and directly affecting regional banks significantly more than national banks.


Crypto Public Company Activity


Tether, the entity behind the USDT stablecoin, has unveiled an impressive Q4 2023 report, disclosing a remarkable $2.85 billion net profit. Notably, Tether allocated $2.2 billion of this profit to bolster its excess reserves, reaching a substantial $5.4 billion. The earnings breakdown reveals a $1 billion contribution from US T-Bill interest, and $1.85 billion attributed to the appreciation of assets, including gold and BTC holdings.


Presently, approximately 90% of Tether’s stablecoin issuance is backed by cash or cash equivalents. The remaining $640 million, not earmarked for excess reserves, is strategically invested across various projects, encompassing Bitcoin mining, AI infrastructure, and P2P communications.


Importantly, all outstanding secured loans are fully covered, marking the successful fulfillment of Tether’s objective to eliminate the risk associated with secured loans from its token reserves.


With Tether’s long history, this attestation comes as good news and shows a level of scale and risk management sophistication that Tether has adopted. Most impressive is Tether is estimated to have around 100 employees while generating $2.85B in Net Profit in Q4, while Goldman Sachs, who has an estimated 50,000 employees, did $2.01B in Net Profit in Q4.