Zag (www.zag.com), an automotive retail innovator, reached its financing goal with $13.5 million in funding, led by Capricorn Investment Group. Since launching in April 2005, Zag has raised over $46 million in equity capital and additional acquisition debt of $21 million for a combined total investment of $67 million.
Zag is delivering the best new and used car buying experience available today. Zag works exclusively with trusted brands and affinity groups that have a lasting and relevant automotive relationship with their members. Zag private labels its "best in class" internet research and shopping technology and manages an exclusive nationwide network of dealers that are committed to low, up-front pricing, an expedited delivery and administrative process and exceptional customer service. Zag now concentrates the buying power of over 60M members through its various programs to help participating dealers reduce their marketing expenses and streamline the sales process in exchange for delivering the best possible price. As a result they tap into the loyalty and trust of these committed buyers.
"Zag is the first company to concentrate consumer buying power on a hand-picked set of exceptional dealers who offer upfront pricing, excellent service and a unique experience," said CEO and founder Scott Painter. "We're focused on building our business profitability, while changing car buying for the better."
Capricorn invests in opportunities that combine a strong point-of-view with outstanding people who can execute it, and operates globally and across asset classes, including publicly traded securities, financial strategies, private equity and venture capital, real assets and commodities. Having started as the investment firm of eBay's first president, Jeff Skoll, Capricorn seeks to develop long-term relationships with innovative, success-focused investors, companies and entrepreneurs.
"We get excited about companies that improve online and retail experiences for consumers while making it more efficient for all involved. Zag has a unique solution that we believe will change how cars are bought and sold," said Ion Yadigaroglu, co-founder of Capricorn Investment Group.
Before receiving funding from Capricorn Investment Group, Zag already secured an impressive stable of investors including: Global Retail Partners (GRP) — a retail innovator that funds successful companies such as Costco, Office Depot, Jamba Juice, and DealerTrack; Capital One — the nation's largest online auto lender; prominent Southern California venture capital firm Anthem Ventures; as well as other technology icons, prominent dealer groups and renowned individual dealers.
"Although we've already generated significant revenue and momentum in the online automotive retailing sector, we'll continue to serve our high-quality members, partners and dealerships to create a one-of-a-kind retail experience," said Painter. "As the exclusive automotive buying partner and program operator for Capital One, USAA and 13 AAA clubs across the country, Zag represents a combined audience of over 60 million members and works with a network of 1,500 dealerships."