Feb 17, 2017

Used car marketplace Beepi goes bust

Beepi, an online used car marketplace that had raised $150 million in VC funding, is no more. Not officially bankrupt, but out of business and selling off remaining assets to pay creditors. In short: Too high a burn rate married to an inability to raise enough new funding.

Investors who backed the company at a $564 million post-money valuation in mid-2015 are expected to get nothing. That includes SAIC Capital, Redpoint Ventures, Foundation Capital, DST, D.E. Shaw, Sherpa Capital and IDG Ventures USA.

  • Good write-ups on this debacle over at the WSJ and TechCrunch.
  • Sherwood Partners, which is managing the wind-down, tells us that, as of last night no asset sale contracts had yet been signed (despite some reports to the contrary).
  • A mystery here is why a previously-announced merger with a company called Fair.com seems to have collapsed at the last minute, and why some of Beepi's VC board members left when that deal was signed (rather than when it was consummated). The founding team is keeping things very quiet, even from many Beepi investors, which is a lousy strategy if they plan to ever launch another company.
  • There had been talk before the Fair.com agreement that Beepi might sell to VC-backed rival Shift, but that company says it hasn't had any discussions with Beepi since December (and also hasn't gotten a call from Sherwood).

Go deeper

Tariff worries hit record high amid coronavirus outbreak

Data: CivicScience, margin of error ±1 percentage points; Chart: Axios Visuals

Concern about President Trump's tariffs on U.S imports grew to record high levels among Americans last month, particularly as more lost their jobs and concern about the novel coronavirus increased.

Driving the news: About seven in 10 people said they were at least somewhat concerned about tariffs in March, according to the latest survey from CivicScience provided first to Axios.

U.S. coronavirus updates: Largest 24-hour spike in fatalities

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

New York's death toll from the novel coronavirus surged to its highest one-day total on Tuesday, as the U.S. saw its largest 24-hour spike in fatalities, per Johns Hopkins data. Recorded deaths across the U.S. surpassed 12,900 early Wednesday.

Why it matters: State officials have stressed that lockdowns must continue even if cities begin to see slight improvements from social distancing. Several hot spots, including New York, New Orleans, and Detroit, are expected to peak in the coming days.

Go deeperArrowUpdated 1 hour ago - Health

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 12:30 a.m. ET: 1,430,453 — Total deaths: 82,133 — Total recoveries: 301,385Map.
  2. U.S.: Total confirmed cases as of 12:30 a.m. ET: 399,081 — Total deaths: 12,907 — Total recoveries: 22,461Map.
  3. Federal government latest: Acting Navy secretary resigns over handling of virus-infected ship — Trump removes watchdog overseeing rollout of $2 trillion coronavirus bill — Trump said he "didn't see" memos from his trade adviser Peter Navarro warning that the crisis could kill more than half a million Americans.
  4. States latest: California Gov. Gavin Newsom is confident that more than 200 million masks will be delivered to the state "at a monthly basis starting in the next few weeks."
  5. Business latest: America's food heroes in times of the coronavirus crisis. Even when the economy comes back to life, huge questions for airlines will remain.
  6. World updates: China reopens Wuhan after 10-week coronavirus lockdown.
  7. 2020 latest: Polls for Wisconsin's primary elections closed at 9 p.m. ET Tuesday, but results won't be released until April 13. Thousands of residents cast ballots in person.
  8. 1 Olympics thing: About 6,500 athletes who qualified for the Tokyo Games will keep their spots in 2021.
  9. What should I do? Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  10. Other resources: CDC on how to avoid the virus, what to do if you get it.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.