CurbStand, maker of an app that lets drivers prepay for valet services, has secured $3 million to expand its executive staff and further develop its offering.
The latest round brings CurbStand’s total seed funding to $4 million. It received $1 million after its launch last October. The same angel investor, whose identity was not disclosed, funded both rounds.
Aimed at removing the cash hassle at the valet stand, the Beverly Hills startup’s service is currently available only in Los Angeles. Chief Executive Serge Gojkovich said the company planned to expand to six more cities within the next year and has added to its team of 20 and begun setting up in Miami, Dallas and Austin, Texas.
CurbStand quietly launched last October and only began to market its iOS app in the last few months. It charges a 10 percent convenience fee to the driver. Gojkovich declined to disclose its revenue through its first year, but said that in July the company saw a 50 percent increase in the number of app downloads and a 25 percent increase in transactions over the month earlier. CurbStand is now offered at 125 valet stands that serve 170 businesses in the Greater Los Angeles area.
The car and driver service industry is getting crowded as more startups look for ways to disrupt traditional offerings, from ride-sharing competitors Uber and Lyft to MonkeyParking, which is reportedly looking to expand its controversial parking spot auctioning app in Santa Monica. But Gojkovich said there’s plenty of space for everyone in the streets of Los Angeles.
“There will always be people who want to drive their car,” he said. “We’re one piece of the puzzle that works quite well with companies like Uber.”
Staff reporter Melissah Yang can be reached at MYang@labusinessjournal.com. Follow her on Twitter @MelissahYang for the latest in L.A. tech news.