DriverUp is a Dallas, TX based online marketplace that allows investors to buy auto loans. The company has raised a $20m Series B.
DriverUp provides investors access to loans used by consumers to buy cars. Those investors are typically groups such as hedge funds, endowments, family offices, and high net worth individuals—known as accredited investors—who are seeking to lend their money in ways that provide higher returns without necessarily having greater risk. Investors can expect returns of 8 percent to 10 percent, according to the company. DriverUp, which says the auto lending industry is worth $1 trillion, uses software and data analytics to help secure and service the loans for investors. A minimum $100,000 investment is required.