Peer-to-peer car-sharing platform Getaround Inc. has secured a $25 million venture loan facility from Horizon Technology Finance Corp., a specialty finance company that provides secured loans to venture capital-backed companies.
“Getaround is changing the way people think about renting and sharing cars through their seamless and easy-to-use technology platform,” Horizon President Gerald Michaud said in a press release announcing the deal. “They have done an excellent job adapting to the current challenging environment, and their innovative technology leaves them poised to embark on their next phase of growth. We are excited to support Getaround as they progress toward becoming a global leader in mobility.”
Getaround aims to help individuals rent out their cars by the day or hour, given that most cars sit idle for 22 hours out of every 24. The company aims to disrupt the $100 rental and mobility markets. It currently operates in some 300 U.S. and European cities, with backing from such venture capital heavyweights as the SoftBank Vision Fund, Menlo Ventures and Braemar Energy Ventures.
“We are very appreciative of Horizon’s support and confidence in Getaround being the future of mobility,” said Getaround Founder and CEO Sam Zaid. “Our pioneering contactless solution enables people across the globe to carshare safely during the pandemic. Horizon’s investment will help us further accelerate our growth.”
Getaround said it plans to use the loan proceeds for “general working capital purposes.”