A couple days ago we told you about Auction Edge, the stealthy Seattle startup which is looking to transform the way automobiles are sold at auction. At the time, we reported that the company — led by startup veteran David Weld — had acquired Auction Pipeline of Spokane.
We also noted that it planned to buy other online auction companies as it rolled up players in the industry. Well, it didn’t take too long for more news to emerge. Auto Remarketing reports today that Auction Edge also recently purchased Auto Lookout, a 13-year-old Indiana company that helps auto auction companies build Web sites. It is also the operator of IndependentAuctions.com.
Weld, a former Microsoft manager who later became CEO of PivotLink and Cognisoft, confirmed the deal in an email to GeekWire. He also confirmed that Mark Richardson, who previously worked with Weld at MessageGate and Loudeye, has joined the company as CTO. The chairman of the board is National Auto Auction Association president Bob McConkey, and former Starbucks exec Scott Heydon is serving as a advisor.
Last week, Weld told us that they are designing technology to “power the entire value chain” in the wholesale automotive business.
“It is a massive market,” Weld said. “It is a super big play.”
Weld declined to disclose the number of employes or the backers of the company, though it is not backed by venture capital firms. A SEC filing indicated that Auction Edge had raised $6 million of a $10.8 million round, a portion of which was being used to buy Auction Pipeline.
The company is in the early-stage of development, and does not even have a Web site. But this is one company worth watching. When it launches, Weld told us that Auction Edge will be a “decent-sized profitable company out of the gate.”