Horizon Technology Finance led a $50 million venture loan facility to Nextcar Holding Company, (doing business as Autonomy), a car-as-a-service subscription company. Horizon Technology Finance funded $7 million of the initial $14 million draw of the facility.
Autonomy is a technology company founded by Scott Painter, who also founded TrueCar, CarsDirect.com (now Internet Brands) and Fair, which pioneered the car-as-a-service category, and Georg Bauer, founding CFO and later CEO of Mercedes-Benz Credit, CEO of global financial services for BMW Group and co-founder of Fair._x000D_
Autonomy’s vehicle subscription can be managed digitally through the company’s mobile app. Subscribers pay Autonomy a monthly subscription payment along with a start fee and refundable security deposit for a vehicle subscription. The subscription is month to month after a three-month period and bundles routine maintenance and roadside assistance (with insurance coming soon). Autonomy recently launched its Tesla Model 3 vehicle subscription program, the first model in its electric vehicle channel, and will use the loan proceeds from Horizon Technology Finance for general growth and working capital purposes.
“Autonomy is focused on changing the way consumers think about and access mobility, and we are pleased to support its growth,” Gerald A. Michaud, president of Horizon Technology Finance, said. “Led by a seasoned and experienced management team, Autonomy is using innovative technology to advance an alternative mobility model predicated on an affordable and flexible monthly subscription rather than an expensive and sizable long-term loan.”
“Access to mobility is critical for the majority of Americans who rely on a vehicle daily to get to work, take their kids to school or visit the doctor. Horizon’s support is incredibly important to us as we progress our mission to provide consumers with easy and affordable access to mobility,” Painter said. “We believe our value proposition and digital experience is compelling for the entire automotive ecosystem — from consumers to dealers to manufacturers — and considerably simplifies access to a vehicle. By providing a fast, flexible and affordable experience for consumers to choose vehicles based on their changing needs, we expect to scale our subscription base rapidly and profitably.”
Horizon Technology Finance is a specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services and sustainability industries.
