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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.

Crypto Public Companies Snapshot

Crypto Public Companies Snapshot

Ryan McCulloch
October 25, 2024
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Let’s talk about MicroStrategy this week. As a reminder, MicroStrategy is an enterprise analytics and mobility software provider that’s been around since 1981. In August 2020, they decided to invest ~$250M in Bitcoin and have continued with that strategy for the last four years. As of September 2024, MicroStrategy now holds ~1.2% of the total Bitcoin supply, totaling 252,220 Bitcoin, currently worth $16.8B.

 

 

In 2022, a clear strategy shift occurred with Michael Saylor’s departure after the company took a $917M loss. Despite that, the company continues to purchase Bitcoin, acquiring 7,420 BTC or $458M worth of Bitcoin in September 2024. Before that, the company had acquired 36,650 BTC after August 2022. The strategy has worked out fairly well for the company, with BTC yield rates—a metric that shows MicroStrategy’s Bitcoin returns relative to Bitcoin after accounting for dilution—at 17.8%, 7.3%, and 1.8% for September 2024, 2023, and 2022, respectively.

 

 

Moreover, MicroStrategy’s value has been driven by its holdings. The company’s returns have been 242%, 65.7%, and -70.53% year-to-date in 2024, 2023, and 2022, respectively. This is favorable compared to YTD BTC returns of 57%; however, it compares unfavorably to last year’s returns of 156% and -64% in 2023 and 2022, respectively. This discrepancy is likely due to the average cost of each acquired Bitcoin being around $38,585. Yet, in the grand scheme of things, since starting its Bitcoin strategy, the company has seen a return of 1,508%—an overwhelming success. Bitcoin itself has increased ~470% in the same period.