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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 M&A Snapshot

Week of December 30 – January 5

Eric F. Risley
January 5, 2025
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December 30th – January 5th

PERSPECTIVES by Eric F. Risley 

 

The return of the leaders to the M&A market.

 

It has been a satisfying week, especially when considering the overall sentiment in the market. From an M&A perspective, announcements from Coinbase, Binance, and FalconX signal the return of a critically important acquirer group: the crypto leaders. While the Coinbase and Binance transactions were modest-sized, tactical license and product acquisitions—and quite predictable—they align with a growing consensus we’re hearing in conversations with leading crypto firms: M&A is back on the table. In some cases, these firms are even aspiring to more strategic, “move the needle,” high-profile objectives.

 

 

FalconX’s acquisition of Arbelos Markets is unquestionably the most strategic deal this week. FalconX is arguably the leading institutional-only crypto prime broker, boasting impressive institutional trading volumes and a strong financial position. Arbelos Markets, co-founded fairly recently by Joshua Lim and Shiliang Tang, raised $56 million in seed funding in May 2024, led by Dragonfly, with FalconX also participating.

 

 

This acquisition bolsters FalconX’s position in derivatives by bringing a block-trading and OTC derivatives market liquidity provider in-house. This move not only enables FalconX to capture a larger share of trade revenues but also ensures client needs are consistently met. Derivative volumes significantly outpace spot trading volumes and are, arguably, more profitable. As aptly noted by our partner, Mike Klena, in our M&A Alert on this transaction, a similar trend occurred in U.S. equity trading once it became commoditized in the early 2000s. Firms responded by expanding their higher-margin derivatives offerings, often through acquisitions.

 

 

There are already notable M&A precedents in this space. Coinbase acquired FairX in 2022 (an Architect Partners client and now Coinbase Derivatives), and CBOE purchased ErisX in 2021—though, in hindsight, that deal may have been premature given the market’s development at the time. Several new players, including OneTrading and D2X, have also emerged recently.

 

 

Finally, for a complete assessment of the M&A and financing markets, keep an eye out for our Year-End 2024 Crypto M&A and Financing Report, which will be published this coming week. Preview summary statement: “Cautious optimism.”