3 Reasons Why NFX Invested In Aucto
NFX recently led Aucto’s $3.7M seed round. You can think of Aucto as a “fintech-driven eBay” for capital equipment in the automotive and energy verticals. They enable sustainable buying and selling of business and industrial assets, some of which might have ended up rusting or wasting away in warehouses.
Aucto generates millions of dollars in value for enterprises with surplus capital assets, and there are $300 billion of assets available to supply this market.
These large industrial businesses have yet to be touched by software, nor by marketplace approaches. In fact, we’ve been discussing this B2B marketplace transformation for over 20 years, and it just started happening about 2 years ago. It’s now in full swing and Aucto joins NFX’s other B2B marketplaces in the Guild, like Moov, NuvoCargo, and Medinas Health.
We love that the Founders are passionate about the environment and seek to make a difference in waste reduction.
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Aucto is already used in over 70 countries to help large companies identify surplus assets and evaluate, redeploy and resell these assets. The public marketplace connects sellers directly to buyers, including small to mid-sized businesses worldwide looking to source quality equipment, machinery, materials, and parts.
Let us share the 3 top reasons why we seeded this marketplace, in order to bring fundraising and operational insight to our community of early stage Founders.
1. Aucto Brings Sustainability to the Industrial Supply Chain
With growing government investments in infrastructure creating widespread new equipment shortages for private businesses, buyers are increasingly turning to the second market to meet their needs. The Aucto platform helps meet this need by enabling companies to identify surplus assets across the enterprise and evaluate, redeploy and resell these assets on private and public marketplaces.
Their mission is to help reduce waste by providing a sustainable solution for these surplus assets. The dominant and existing enterprise supply chain completely ignores how surplus and end-of-life assets can be repurposed. Aucto is able to provide a solution to prevent this valuable supply from going to waste.
2. Modernizing A Huge, Antiquated Marketplace (with Network Effects)
The Aucto online marketplace brings speed and compliance to industrial liquidations & auctions. They digitize and automate asset classification, internal redeployment, buyer verification, invoicing and payments, all the way to generating audit and compliance reports to quantify the positive impact of asset recovery efforts.
With the latest update, buyers can create an account and place their first bid in minutes, without having to go through the headaches of dealing with an auctioneer.
Aucto already processes millions of dollars of transactions with top industrial names such as GM and WEC Energy Group. It’s rare to see such traction in early stage B2B marketplaces, showing that the Aucto team has figured out a great starting point. They now have the capital and the runway to grow that into a multi-billion dollar marketplace.
To learn more about Aucto, visit their website.