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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.

Insights

Weeks of November 13 – November 26

Elliot Chun
November 29, 2023
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22 Crypto Private Financings Raised ~$130M (Week of November 20)

29 Crypto Private Financings Raised ~$465M  (Week of November 13)

Rolling 3-Month-Average: $156M

Rolling 52-Week Average: $176M

 

Is this a signal that the crypto private financing market is turning the corner?

 

$465M is the most amount of weekly capital raised since Dec 12, 2022.

 

The three largest raises came from well-known, “OG” companies who learned from this last market cycle and are evolving their businesses into this next phase.

 

Blockchain.com, founded in 2011, is one of the originals and is refocusing on their core retail exchange business. As a sign of this refocus, Blockchain.com just announced a partnership with SoFi to transition SoFi’s crypto customers to Blockchain.com.

 

Fnality, founded in 2015 as Utility Settlement Coin, is one of the surviving consortiums and gearing up for its Sterling Fnality Payment System launch, which seeks to provide a global liquidity management network for wholesale payments and tokenized RWA. The participants in this network are impressive, featuring Goldman, BNP, DTCC, Euroclear and WisdomTree as investors, joining Santander, BNY, Barclays, CIBC, Commerzbank, ING, Lloyds, Nasdaq, State Street, SMBC, and UBS.

 

OSL, founded in 2018, is one of the two licensed exchanges in Hong Kong and is focusing its growth efforts in the region following investment from BGX, which is connected to Foresight Ventures that recently acquired The Block.

 

As our industry transitions from what I call The Great Purge to this next to-be-named phase, we expect many of the surviving “OG” companies to raise significant rounds and refocus their efforts on what got them to this point, secure their financial health by achieving sustainable profitability, and selectively assess expansion opportunities.