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| Zipcar Drives Off with $2M in Ongoing Series
C Round |
| By Alexander
Oveis |
| 11/10/2003 |
Cambridge,
Mass. |
Zipcar, a Web-based
short-term car rental company, said it has raised $2 million in the first stage
of its Series C round.
Evercel, a publicly held developer and
manufacturer of rechargeable batteries and battery components, was the sole
investor. As a result of the deal, James Gerson, chairman of Evercel, will take
a seat on the company's board.
Zipcar, which is based in Cambridge,
Mass., would not disclose the target amount or timing for future tranches. Nancy
Rosenzweig, the vice president of marketing for Zipcar, said the funds would be
used to "put depth into the Zipcar's current operations and markets."
Zipcar's previous investors included the Boston Community Venture Fund,
Seed Partners, and Gravestar. In January 2001, Zipcar raised $1.3 million in
seed funding. The company also raised undisclosed amounts in its Series A round,
which closed at the end of 2001, and in the Series B round, which closed at the
end of 2002.
Zipcar's services are available in Boston; New York City;
Washington, D.C.; Brookline, Mass.; Somerville, Mass.; Princeton, N.J.; and
Hoboken, N.J. Ms. Rosenzweig said the company would focus on strengthening those
markets, and then consider entering new markets.
Zipcar's 250 cars are
located in parking spaces in urban neighborhoods and business districts and can
be used by Zipcar members at any time. Reservations are made online or by phone.
On average, one Zipcar services the needs of 25 urban drivers and, according to
company research, 15% of Zipcar members have given up private car ownership and
35% have postponed the purchase of a new car. The cost for a Zipcar membership
is $30 and members pay as they go with hourly and mileage charges. A typical
monthly Zipcar member bill for 15 hours of driving during three sessions is
between $100 and $150.
The company has 25 employees in the Cambridge,
Mass., New York, and Washington, D.C. Ms. Rosenzweig said the company has
already hit the break-even mark in the Boston market; long-term prospects for
profitability will depend on the company's decision to expand.
©2004 Dow Jones & Company, Inc. All rights reserved.