Capitalizing on its position as the last man standing in the once crowded online auto wholesaling auction market, Openlane Inc. today announced that it has closed a $25 million round of venture capital.
Late-stage specialist Meritech Capital Partners of Palo Alto, Calif., led the round, which included previous investors August Capital of Menlo Park, Calif., RPM Ventures of Ann Arbor, Mich., and Zilkha Capital Partners of Palo Alto. The nine-year-old company will use the money to shore up its balance sheet and for possible acquisitions, but will also boost investment in new products and technology.
Openlane, which recently changed its name from ATC Onlane, has operated near breakeven since a $5 million round led by August Capital in 2002 while undertaking three acquisitions using only stock. The once cash-hungry company raised a $30 million round led by Madison Dearborn Partners of San Francisco amid the Internet land grab in 2000 and has gained market share steadily, biding its time as competitors disappeared or were absorbed.
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