Automotive AI solutions company Impel has completed a secondary share sale to FM Capital, a venture firm backed by 56 top U.S. dealer groups representing over 1,100 stores.
For context: In this deal, FM Capital bought shares from Impel's early investors and former employees, not from Impel itself. So Impel didn't raise new money or dilute existing shareholders.
Instead, early backers who've been holding shares for years got an exit, and FM Capital got a stake in a high-growth company.
This is the same playbook investors have used recently to get into companies like OpenAI, Stripe, and SpaceX.
What they’re saying: “In automotive retail, successful AI deployment hinges on two capabilities most vendors discuss but rarely deliver: differentiated data and meaningful dealership access. Impel is one of the few organizations that has built both,” said Chase Fraser, Managing Partner at FM Capital.
Worth noting: FM Capital was founded by Chase Fraser and billionaire auto dealer Red McCombs. It only invests in automotive tech, and its limited partners are dealer groups (the actual customers portfolio companies need to reach).
Why it matters: Dealers don't care about AI for AI's sake. They care if it actually helps them sell more cars, close more service appointments, or reduce headcount in the middle of a labor crunch. FM Capital's network gives Impel direct feedback from stores already using the platform, while dealers get a stake in a well positioned vendor. If the tech proves out, they could profit twice.
“[FM Capital’s] expansive network of partners and operators, along with deep relationships across the entire automotive industry, will enable us to accelerate development of the largest fully connected AI ecosystem,” added Devin Daly, co-founder and CEO of Impel.
Bottom line: As AI vendors and dealership tech stack together through investments like this, the industry is heading toward tighter integration between the companies building the tools and the stores using them.
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