TrueCar recently announced that it filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for an IPO of its common stock. According to the registration statement, TrueCar is seeking to raise $125 million through its IPO for “general corporate purposes, including working capital, operating expenses and capital expenditures.” TrueCar’s future includes “additional products and services to improve the car-buying and car-ownership experience.”
As described in the registration statement, TrueCar’s “mission is to transform the car-buying experience for consumers and the way that dealers attract customers and sell cars.” Specifically, TrueCar explains that it benefits “consumers by providing information related to what others have paid for a make and model of car in their area and, where available, estimated prices for that make and model of car, which we refer to as upfront pricing information, from our network of TrueCar Certified Dealers.”
As noted by our own Jeff Soble in November, “car buyers are armed with more information before they walk onto a lot than ever before.” TrueCar is one of several websites that provides customers with detailed information, including a vehicle’s invoice and other data regarding the sale of similar cars. TrueCar’s IPO, led by Goldman Sachs and JPMorgan Chase, demonstrates both the value of information for the consumer and the dealer and how the car buying experience is changing dramatically. Moreover, TrueCar’s significant revenue growth – from $38 million in 2010 to $134 million in 2013 – shows the dramatic shift in how cars are bought and sold.
Mr. Soble posed the following question and answer just six months ago: “At what point will people be buying cars without ever visiting a lot? It might be sooner than we think.”
Who knows, maybe TrueCar, armed with an additional $125 million in its coffers, may be just the company to bring about such change.
This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney.
This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary.
The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites.
In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.