Motorexchange raises second round financing

Motorexchange just announced their second round financing led by Epiphany. As early stage investors, its always an anticipated moment when your early investment goes out to raise their next round of capital. While at the initial investment, one would have bought into the team and the space, this is typically the first time there is an external examination of what the company has really been able to demonstrate. For Motorexchange, it was about validating some of the concept risks that the company had bet on – will online auctions work, will we be able to create an effective currency, can we provide monetary lift to our customers, and so on. The team did a great job of working through these validation points, and found endorsement of the same in form of next round of financing.

Many other times, what is perceived as progress internally may be discounted by the market. Another customer – sure, but will it really scale? Better product – yes, but… “Yes, but” as an entrepreneur knows, is the moment of truth – and that is equally true in subsequent rounds of financing. Hence it becomes very important to not only look at business milestones from customers’ standpoint, but also from prospective investors’ standpoint – if your business can’t scale without more capital, then catering to capital providers is part of the game. One thing that typically helps is to listen to prospective investors and factor their inputs (on what they like or not, or what progress they’d like to see) into the short term plans of the company.

Best wishes MotorExchange, for building the next phase of your vision!