to expand into Europe later this year. Neumann’s family workplace, 166 second Financial Services , invested$10 million into GoTo Global as part of a$19 million Series B round. As part of his investment, Neumann will have the ability to appoint one board member on his behalf. Existing investor Shagrir Group Vehicle Providers, a publicly traded Israeli company, also participated in the round.
GoTo Global (likewise described as GoTo Mobility) is a mobility-as-a-service company that is intending to cover the whole range of shared cars from cars and mopeds to bicycles and electric scooters. The company, which began in 2008 with a concentrate on automobile sharing, previously raised $3 million in seed funding. It had actually also secured a $9 million loan from Shagrir, which has actually been converted into the equity investment.
This latest funding will be utilized to expand its shared services into Europe, starting with Madrid.
Since forming 166 second Financial Services, Neumann has actually made about 15 investments in start-ups in Canada, Israel, the U.K. and the United States, consisting of EquityBee, Moon Active and Peach Street.
This is Neumann’s first investment since he submitted a suit against Softbank Group for alleged breach of agreement and breach of fiduciary duty for pulling a $3 billion tender deal for WeWork shares. SoftBank Group pulled its $3 billion tender deal for WeWork shares April 1, citing COVID-19’s impact on business but likewise closing conditions not being fulfilled.
COVID-19, or more particularly changing consumer habits due to the pandemic, is mostly what has actually driven Neumann’s investment in GoTo Global, according to a source acquainted with the investment. Neumann isn’t speaking openly due the claim.
Neumann made the investment because he thinks flexibility will be an essential part in people’s lives post-COVID-19, the source said.
GoTo Global is just as bullish on its post-COVID future.
“Shared mobility, and transport in general, was among the markets struck hard by the economy lock-downs as people were required to self-isolate,” GoTo Global CEO Gil Laser said in a declaration revealing the raise. “However we are the ones who made the come-back fastest, we are +12% back to pre-lockdown baseline. We comprehend that although on one hand shared transportation might not seem to be the best solution, on the other hand it is viewed as a more secure alternative than a public transport and it is definitely a much cheaper alternative than an owned cars and truck.”
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.