Case Study | CarZen
New Road Media invested in, helped launch and monetized a new iPad automotive commerce application.
The automotive app landscape is highly cluttered—especially challenging for an unknown brand launching. When the CEO of CarZen, a yet to be built iPad car shopping app approached New Road Media for investment, the app’s consumer value proposition and monetization capability was clear right away.
New Road Media stepped in to become CarZen’s inaugural seed investor and a value add partner in its success. Once the app launched, New Road Media leveraged its existing connections with the media to ultimately earn it “Editor’s Choice” and “Best new app” within the iTunes store. This successful press followed immediately with tremendous user downloads, significant user engagement and now the ability to be monetized.
With CarZen’s significant new found user-base, great press and elegant user experience, New Road Media developed in tandem with the CEO a comprehensive sponsorship package aimed at one vertical: auto insurance companies. Its team reached out and presented to all the major auto insurance companies, ultimately securing a major full-year contract for 100% SOV of the app from Allstate Insurance. In addition, New Road Media set forth partnership discussions with the CEO of the country’s largest online car dealership, Auto Nation. The partnership resulted in additional major revenues for CarZen bypassing the need for a Series A funding event. CarZen was purchased by Liberty Mutual Insurance in late 2013.
New Road Media’s ability to collaborate with a talented entrepreneur by exploiting its relationships, experience and broad industry reach created clear paths to revenue, lack of the need for funding and an eventual exit for the venture CarZen.