Horizon Technology Finance led a $50 million venture loan facility to Nextcar Holding Company, Inc. dba Autonomy, a completely digital mobility offering that provides consumers with an affordable way to get access to a vehicle without long-term debt or commitment. Horizon funded $7 million of the initial $14 million draw.
Autonomy is a technology company on a mission to make access to mobility easy and affordable through car subscriptions. The company was founded by auto retail, auto finance and auto insurance disrupters, Scott Painter, founder of TrueCar, CarsDirect.com (now Internet Brands) and Fair, which pioneered the Car-as-a-Service (CaaS) category, and Georg Bauer, founding CFO and later CEO of Mercedes-Benz Credit Corporation, CEO of Global Financial Services for BMW Group, and co-founder of Fair. Autonomy’s vehicle subscription can be managed digitally through the 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, roadside assistance and soon insurance, eliminating the hassle and the long-term commitment of a traditional loan or lease. Autonomy recently launched its Tesla Model 3 Vehicle Subscription Program, the first model in its Electric Vehicle channel, and will use the loan proceeds 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,” said Gerald A. Michaud, President of Horizon. “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,” said Scott Painter, co-founder and Chief Executive Officer of Autonomy. “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.”