Founders Group, linked to NSO co-founders revealed as early investor in Vroom
Founders Group, an investment firm established by two NSO
Group Technologies Ltd. co-founders, announced Monday it was among the early
backers of used cars online retailer Vroom Inc., which recently listed on
Nasdaq.
According to the announcement, Founders Group invested
several millions of dollars in Vroom’s $54 million series B round in 2015. With
the completion of Vroom’s initial public offering, last month, at a valuation
of $2.5 billion, Founders Group raked in a significant profit on paper. Vroom’s
value more than doubled the next day reaching $5.5 billion and it is now traded
at a market capitalization of $6.4 billion.
Founded in 2014, Vroom develops an online direct-to-consumer
marketplace that offers low-mileage reconditioned vehicles. Vroom also offers
buyers optional financial aid for the acquisition as well as insurance through
its partners.
Founders Group was established in 2013 by venture capitalist
Isaac Zack and NSO's founders Omri Lavie and Shalev Hulio. The firm provides
multi-stage funding to companies in the domains of fintech, cybersecurity,
e-commerce, internet-of-things (IoT), and enterprise software. Founders Group
has 30 portfolio companies, two of them have gone public and six were acquired,
including smart mobility startup Moovex Ltd. and sales intelligence company
ONDiGO.
“Even though no one could have predicted the coronavirus
(Covid-19) pandemic, Vroom’s founders were wise to create a platform that
pushed a traditional sector into the future and were quick to identify a new
trend,” Lavie said in a statement. “The Covid-19 era has changed the way we do
business and pushed many sectors into the online realm, including the
automotive industry in the U.S.,” he added.
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