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TrueCar Might Test Drive an IPO in 2014

The company looks to capitalize on strong appetite for dot-coms


TrueCar, which operates an ecommerce site for autos, is planning to launch an IPO in the first half of 2014, according to a report from The process is still in the early stages as the company remains in discussions with potential underwriters like Goldman Sachs (GS) and JP Morgan (JPM).

The timing looks pretty good, given how well dot-coms have done this year. Consider that Shutterstock (SSTK) has posted a sizzling gain of 337% and Xoom (XOOM) is up 74%. Then there was the recent IPO from Twitter (TWTR), which spiked 73% on its first day of trading in early November.

But TrueCar should also benefit from the momentum in the auto market. Sales have been strong across the board, lifting the stock values of companies like GM (GM), Ford (F) and AutoNation (AN).

TrueCar got its start back in 2005. Since then, it has built a strong platform, which has delivered more than 800,000 vehicles to customers. Its mission is to “make the car-buying process simple, fair and fun.”

Two years ago, TrueCar raised about $200 million in private financing. Some of the investors included GSV Capital (GSVC), the United Services Automobile Association, GRP Partners, Anthem Venture Partners and DealerTrack (TRAK).

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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