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

Elliot Chun
April 19, 2024

Should I buy BTC or should I invest in a BTC Network Operator (Miner)?


This continues to be a key question on how BTC investors position their portfolios, as the thesis with investing in a BTC Miner is the Miner can earn BTC rewards at a cost basis that is lower than the current BTC price. So investors decide if the risk associated with a Miner’s ability to generate rewards is worth the difference in cost basis of the BTC rewarded versus the current price of BTC.


Today the Fourth Halving is upon us and the BTC rewards are cut from 6.25 to 3.125 BTC rewarded per block, which has a significant impact on every Miners’ ability to generate BTC.


So how did the Third Halving (12.5 BTC down to 6.25 BTC) affect BTC Miners? 


The Third Halving was on May 11, 2020 and in the following weeks, the first set of publicly traded companies started announcing their transition into BTC Mining companies, so while the data set is not perfect, we present the bottom chart on the left, which compares the performance of our BTC Network Operator Subsector to the price of BTC, Gold, and S&P 500. (Note we measured performance in percentages and not absolute return.)


After the Third Halving, BTC Miners outperformed BTC until Jan 2022, which was when Miners experienced the death scenario of extremely expensive cost of capital, high energy prices, high miner machine prices, and low BTC prices. In 2023, the Subsector rebounded by capitulating on unrecoverable situations, re-negotiating more sustainable operating and financing terms, and recalibrating their operating discipline. 


In YTD 2024, BTC is up 45%, the Architect Crypto Public Market Index is up 26% (driven primarily by Coinbase & Microstrategy), while the Network Operator Subsector is down 31%.


Where do we go after today’s Fourth Halving?


As BTC adoption continues, the value of BTC will go higher.


Publicly traded BTC Miners who have successfully navigated since the Third Halving will be rewarded with real opportunities to acquire BTC mining assets (full operating sites, data centers, ASIC miners, shovel-ready development sites) in the next 18 – 24 months. We expect we will see an active M&A environment as the proven BTC Miners jockey for a new batch of sellers who struggle with go-forward 3.125 BTC rewards. 


We also expect BTC Miners to diversify their revenue profiles, including providing computing power to satiate the AI industry’s appetite, delivering innovative on-chain solutions such as Marathon’s Slipstream service, providing BTC mining operating software, and running their own BTC mining pools.


Finally, we expect corporate action activity between BTC Miners and manufacturers of ASIC-mining equipment, given their shared BTC vision and close business alignment.


The Fourth Halving version of BTC Miners is experienced and battle-tested with proven leadership teams who are even bigger believers that BTC will be the global asset of the future.


As BTC adoption continues, the value of BTC Miners will go higher. 


Take the long-term view and know we will see additional cycles (downs & ups) as we achieve sustainability higher levels.