Zipcar deal puts $21M in fuel tank
Zipcar will buy more cars and put them in more places, the Cambridge, Mass., purveyor of car-sharing services announced Wednesday.
The expansion, per Zipcar, will be possible due to a recently completed Series G financing round that raised $21 million. Meritech Capital Partners put up $20 million and Pinnacle Ventures LLC $1 million.
Zipcar also announced the addition of two new directors: Steve Case, founder of America Online, and John Mahoney, a high-ranking Staples executive.
Case, co-founder and former CEO and chairman of AOL, is the founder of Revolution LLC, a holding company that purchased a controlling interest in Flexcar in 2005. In 2007, Flexcar merged with Zipcar and assumed the Zipcar brand.
Mahoney is the vice chairman and CFO of Staples. Mahoney will also chair the Audit Committee and will sit in a newly established board seat, expanding the Zipcar board to nine members.
Read more in the Boston Business Journal.
Does the private equity deal put a damper on the plans for an initial public offering by Zipcar?
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