How Much Did Zipcar Raise? Funding & Key Investors

Zipcar has successfully raised funding over six rounds, with the latest being a Series G round involving investors like Meritech Capital Partners. The company has also made strategic investments and acquisitions, including the notable exit of Wheelz.

Keep reading to explore the intricacies of Zipcar's fundraising journey and the investors backing this innovative car-sharing platform.

What Is Zipcar?

Zipcar, headquartered in Boston, Massachusetts, is a prominent player in the car-sharing industry. The company operates in over 500 cities across North America and Europe, providing a convenient and cost-effective alternative to car ownership.

Founded with the mission to offer hourly and daily car rentals, Zipcar includes benefits such as gas, maintenance, designated parking, and insurance options. The company has an employee count ranging from 501 to 1000, reflecting its substantial presence in the transportation sector.

How Much Funding Has Zipcar Raised?

1. Series B
   • Amount Raised: USD 4,704,370
   • Date: December 2002
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To expand its fleet and enhance its technology platform.
2. Series C
   • Amount Raised: USD 2,000,000
   • Date: November 2003
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To support market expansion and operational scaling.
3. Series D
   • Amount Raised: USD 10,000,000
   • Date: January 2005
   • Lead Investors: Benchmark
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To accelerate growth and increase market penetration.
4. Series E
   • Amount Raised: USD 25,000,000
   • Date: November 2006
   • Lead Investors: Greylock
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To expand into new cities and enhance service offerings.
5. Series F
   • Amount Raised: USD 45,000,000
   • Date: November 2007
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To prepare for an IPO and strengthen financial stability.
6. Series G
   • Amount Raised: USD 21,000,000
   • Date: December 2010
   • Lead Investors: Meritech Capital Partners
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To strengthen its balance sheet and continue its geographic expansion.

Total Amount Raised: USD 107,704,370. Current Valuation: Not publicly disclosed.

Key Investors

• Meritech Capital Partners
  • Details: Meritech Capital Partners is a venture capital firm that invests in late-stage technology companies. They participated in Zipcar's Series G funding round.
  • Investment Focus Areas: Technology companies, software, SaaS, internet.
  • Notable Investments: Facebook, Salesforce, Tableau.
• Greylock
  • Details: Greylock is a venture capital firm that focuses on consumer and enterprise software. They were involved in Zipcar's Series E funding round.
  • Investment Focus Areas: Consumer software, enterprise software, social media, e-commerce, cloud computing.
  • Notable Investments: LinkedIn, Airbnb, Dropbox.
• Benchmark
  • Details: Benchmark is an early-stage venture capital firm that focuses on technology-driven companies. They led Zipcar's Series D funding round.
  • Investment Focus Areas: Early-stage venture capital, technology-driven companies.
  • Notable Investments: Uber, Twitter, eBay.

What's Next for Zipcar?

Zipcar's future looks promising with significant opportunities for geographic expansion and financial strengthening. The recent $21 million funding round, coupled with a $75 million IPO filing, positions the company to acquire similar services in foreign markets and consolidate its presence in the car-sharing industry.

Future fundraising efforts are likely to support these expansion plans, leveraging the expertise of new board member Steve Case. However, Zipcar will need to navigate challenges such as competition from other car-sharing services and traditional car rental companies, as well as the complexities of international expansion.

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