Octane is a New York-based startup that provides expedited transaction processes for consumers making large purchases of recreational vehicles. The startup offers automotive underwriting processes with innovations in financing and credit products. It helps consumers to pre-qualify for purchase with speed and efficiency. The company has recently received a round of venture capital funding that will help it to further grow its business to reach more customers. If you're not familiar with the company, here are 20 things you didn't know about Octane.
1. Octane is a versatile lending company
According to Crunchbase, Octane is a versatile financial company that is listed under five major industries. It provides credit for consumers as well as other financial services. It also facilitates lending programs for lifestyle purchases. Finally, it is also listed as a FinTech company because of its innovative automated processing systems that use advanced technologies to expedite the applications, approval, and underwriting processes for instant decisions about the creditworthiness of applicants. It's one of the fastest ways for consumers to make lifestyle credit purchases.
2. Octane is still a young company
Octane was founded in 2014. It has only been in operation for seven years as of 2021. This is relatively young for a lending company when compared to some of the older more established institutions that have been around for more than a hundred years. In the short time, it's been active, Octane has risen to become one of the leaders in its niche of the industry. The legal name of the company is Octane Lending, Inc., but it is also known as Octane Lending. Its headquarters are located in New York, New York.
3. Octane is a Diversity Spotlight company in the United States
Octane has earned the distinction of becoming a business that is listed as a diversity spotlight company. It is Hispanic or Latinx founded. Additionally, it is Black or African American founded. Octane has five co-founders including Andre Gregori, Jason Guss, Mark Davidson, Mark Garro, and Michael Fanfant. All but one of the co-founders has made their entrepreneurial debut as first-time business owners.
4. Mark Davidson is a serial entrepreneur
Mark Davidson is the sole co-founder of Octane with previous business experience in launching new companies. He is a serial entrepreneur who has founded three organizations including Octane. He serves as the chief revenue officer of Octane and currently serves on one board of directors in an advisory role. Mr. Davidson co-founded a company called oDigger in 2009. He served as the marketing director from 2009 through 2013. He co-founded a business called Cheggin in October of 2013. He was the CEO of the company from its launch through October 1, 2014.
5. Octane has a six-member executive leadership team
The core leadership team of Octane consists of six members. Jason Guss is a co-founder and the chief executive office. Mark Garro is a co-founder and in charge of engineering in Houston. Mark Davidson is a co-founder and chief revenue officer. Andre Gregori is a co-founder and head of dealer products. Casey Casterline is a director of marketing. Logan Shedd is the vice president of sales. Adam Redlich is the vice president of talent acquisition.
6. Octane has a seven-member board of directors
There are currently seven members on the board of directors for Octane Lending. These are top-notch professionals who have years of experience in the financial sector. They offer their advisement on the strategic and financial planning for the company. Roger Ehrenberg joined the board in October of 2016. He is the founder and managing partner of IA Ventures with twenty-one portfolio companies and fifteen exits. James Fitzgerald is a founding partner at Valar Ventures with one portfolio company and one exit. David Pinski joined the board as an advisor in January of 2014. He currently serves on one board in an advisory role.
Wes Barton joined the board as an observer on January 6, 2017. He is a managing partner at Third Prime. He has founded one organization and currently serves on eight boards of directors in advisory roles. Andrew McCormack is a board observer and founding and general partner at Valar Ventures with one portfolio company and one exit. Keith Hamlin is a board observer and managing partner at Third Prime. He has founded one organization and currently serves on ten boards of directors in advisory roles. Mark Davidson is a co-founder and chief revenue officer of Octane. He has founded three organizations and currently serves on one board of directors in an advisor role.
7. Octane uses a complex array of technologies
The Octane website is powered by a complicated arrangement of technologies. We learned that Octane is actively using twenty-six technologies to ensure that its website provides visitors and users with a smooth and seamless experience. These technologies are distributed across seventeen technology products and services. Some of these tech products include Google Apps for Business, Amazon Route 53, SPF, Google Analytics, Google Fonts, Vimeo, and several others.
8. Octane has a high budget for IT
The technology products that Octane actively uses to power its website are expensive. Each requires a subscription from the issuer that is likely paid on an annual basis. Although Octane has not released its annual cost for IT, from our experience, it is likely in the tens of thousands with staffing for IT costing even more in overhead costs. It's just the cost of doing business in a high-tech world where convenience for the end-user is one of the primary considerations.
9. Octane maintains an edge over its competitors
Octane has a unique and innovative platform that sets it apart from other online lenders. While there are hundreds of various companies performing similar functions, Octane has secured two registered trademarks in the insurance and financial affairs categories. This prevents any of its competitors from using the same technologies or from copying or imitating certain aspects of the processes involved. The trademarks help them to maintain the distinction from the others.
10. Octane is experiencing growth in monthly website numbers
The analytics for Octane shows that the company has recently experienced a jump in the number of visitors who come to its website. Over the past thirty days, the number of monthly visits was 31,021. This figure represents a monthly growth rate of 21.81 percent, which is fairly remarkable. It shows that there is a growing interest in the products and services that the company offers. The figure has resulted in Octane receiving a ranking of number 611,299 of the millions of websites registered on the world wide web. One hundred percent of the web traffic for Octane comes from people who reside in the United States.
11. Octane is a late-stage equity-funded enterprise
According to Techcrunch, Octane Lending recently raised an additional $52 million in funding after the closing of a round of Series D funding. Octane has participated in a total of twelve rounds of fundraising for a total of $401 million. The most recent round closed on August 5, 2021. $192 million of that total is equity funding with the remaining balance venture capital funding.
12. Octane has secured the support of fifteen investors
There is no shortage of investors when it comes time for a round of fundraising for Octane. The business has attracted the interest and support of fifteen major investors who have high confidence that the enterprise will provide them with a good return on the funds they've invested into its growth and expansion. The most recent investors to join the efforts are Upper90 and Valar Ventures. Other investors include Progressive Investment Company, a lead investor, Contour Venture Partners, Citi Ventures, Third Prime, Parkwood, Gaingels, ALIVE, and others.
13. Octane provides financial services for overlooked markets
While some lenders focus on large purchases for the necessities of life, such as a home, or vehicle, Octane has turned its attention to some of the markets that have largely been overlooked by many major lenders. Although not every purchase is a necessity, for some people, it is the fulfillment of a desire to complement their chosen lifestyle, such as an ATV or motorcycle. Lending options for these items are limited. Octane Lending is providing a solution for consumers who prefer a hassle-free process that gives them instant access to financing of the things that are not deemed a necessity of life, but rather, a lifestyle choice.
14. Octane plans to expand its passion purchases services
Octane is covering financial services, credit, and lending for motorcycles and ATVs but it has plans to further expand the services that it offers to include other passion purchases. The leadership of Octane has confirmed that it plans to continue its dramatic growth and expansion by using the recent funding to enhance the technology to make the transactions and processes simpler and faster. Currently, they're the only platform available that provides the benefits of end-to-end purchasing as they work closely with dealerships in the ATV sector. There are plans to launch into new vertical markets and provide the same speed and simplicity in the credit and financing processes.
15. Octane has multiple partnerships
Octane has developed powerful partnerships with a variety of brands including Triumph Motorcycles, Suzuki, BRP, and others. Their plans include the addition of yet more dealerships as well as OEM and brand partners to provide even more buying solutions for consumers. They're going to wade into deeper waters for financing any type of item that brings a consumer joy but is not a necessity. Their platform will cover everything from a fast application process to digital deal closing and rendering the funds so consumers can get the products they want to purchase in record time. These are processes that are often slow and time-consuming with traditional lenders, and some financial institutions will not finance lifestyle purchases such as these. So far, Octane has partnered with more than 3,800 dealerships.
16. Octane is an emerging unicorn
The most recent round of Series D funding has brought Octane closer to achieving unicorn status. It's just a matter of time before it goes over the top and joins this exclusive and elite group. When a business reaches a valuation of at least $1 billion or more, it becomes a member of the unicorn classification. Octane is just $100 million short, which is the equivalent of one more round of venture capital/equity funding. The current valuation of Octane is over $900 million as of August of 2021. It won't take much to push the enterprise over the top. We fully expect that it will reach this high and lofty status by the end of the year if not before.
17. Octane is growing exponentially
The leadership of Octane has confirmed that the company has been growing at an impressive rate. The financial records indicate that the net income and operating cash flow for the startup are now positive. The expectation for the next twelve months is that the company with originate over $1 billion in loans. Each year, business revenue has been doubling for Octane and it's expected that the revenue for 2021 will be more than $100 million. The company's valuation has increased by more than double its valuation from a year ago.
18. Octane is a remote-first workplace
Octane experienced a growth in its workforce by fifty percent. The enterprise made a slew of new hires that took it from a workforce of 213 workers to a total of 336 employees throughout its offices in New York, New York, and Dallas, Texas. They're still recruiting for the top talent in the country to join their team.
19. Octane is currently hiring
According to LinkedIn, Octane is continuing to grow and expand its workforce. There are thirty-three new positions listed with most in the New York area, and a few in Irving and Houston, Texas. Most are remote positions but some may require work at the offices.
20. Octane is a privately held company
The owners of Octane have opted to keep it as a private company. It receives ample funding through private investors, so there has been no need to take it to the public arena. This is why you won't be able to find shares of Octane stock listed on the public stock exchanges.
Written by Allen Lee
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