Have you ever had an idea that was so amazing you wish you could get on Dragons’ Den or find an angel investor? Well, that’s just what we did here at Clutch. Led by entrepreneurs Dan Park and Steve Seibel, our company’s innovative e-commerce platform helps Canadians buy cars with ease.
The Beginning: How Frustration Led to Success
Founded in 2016, Clutch was the result of frustration with every facet of purchasing a used car. A lack of full disclosure, mechanical problems, price haggling, poor warranties, and hidden fees were just part of the problem. As our COO Seibel explains:
“Clutch was borne out of my frustration with the traditional car-buying process, which instills very little confidence and takes hours. Our company was founded on a number of core values including building trust with our customers, making magic with every purchase, and building a company that makes a positive impact on our communities."
And that’s just what Clutch continues to do, even at the early onset of one of Canada’s most intriguing startups.
CEO Dan Park and former head of Uber Eats in Canada chimed in as well:
“We thought there was a better way to buy a car. We’re trying to build and create a car buying experience from the ground up.”
As Park puts it, Clutch envisions its car-buying platform as being “as easy as buying something from Amazon.” It’s a vision that Canadians can get behind.
Why Investors Believe Clutch Is the Future of Car Buying
In July 2020, Clutch secured $7 million in seed funding with several companies, including Real Ventures, Brand Project, FJ Labs, Azure Capital Partners, and Global Founders Capital. With this cash injection, Clutch looks to increase visibility with consumers and expand in its Canadian markets — Toronto, Halifax, and Vancouver (coming soon) — as well as add to its pool of in-house talent.
Securing a substantial amount of funding isn’t just something that happens. It requires vision, leadership, and a product that woos investors. And that’s just what Clutch brought to the table. As Managing Partner of Real Ventures Janet Bannister states:
“Increasingly, customers are demanding an easy, transparent, risk-free way to buy all goods and services online. While the auto industry has traditionally lagged behind other categories in providing consumers with this type of offering, Clutch is changing this. For the first time, Clutch is offering Canadians a best-in-class e-commerce experience for used cars. Clutch has quickly established itself as the leader in Canada.”
Adding to this sentiment, fellow investor Andrew Black, CEO of BrandProject and Board Member at Clutch included his faith in Clutch’s leadership and overall brand:
"Dan and Steve are building an exceptional team-oriented culture committed to always putting the customer at the center of everything they do. We are very excited to continue supporting Clutch in building the easiest, most trusted, and transparent way to buy a car."
What Makes Clutch Different?
As with many other industries, differentiation is key. But in the used car realm, that isn’t as simple. You have to change how people perceive car buying and add transparency and trust.
Clutch does this in a number of ways for consumers and those who know little about cars in general. This list includes:
- 7-day money-back guarantee
- 90-day, 6,000-kilometer warranty
- 210-point vehicle inspection
- Financing as low as 4.99%
- No-haggle pricing
- 360-degree views of both the interior and the exterior of each vehicle
With all of these perks, Clutch is helping car buyers that don’t know a cylinder from a radiator. And that’s just what Clutch aims to be: a beacon of hope, trust, and success in an otherwise lagging industry.
