--- title: "Automotive Dealer Technology Private Equity | Capstreet" description: "Capstreet invests in automotive technology companies that help dealerships with sales, marketing, finance and insurance, and service lane operations." url: https://capstreet.multisites.ai/industries/automotive publisher: Capstreet phone: +1-713-332-2700 contact: https://capstreet.multisites.ai/contact --- # Automotive technology private equity for dealer-focused companies Capstreet invests in automotive technology businesses that help dealerships. The firm targets solutions for sales, marketing, finance and insurance, and service lane operations. It describes several recent investments in the sector and looks for owners with $3 to $15 million of EBITDA who want a majority capital partner. IndustryUpdated November 10, 20263 min read ![Portfolio company leaders at Capstreet’s 2023 CEO and CFO summit](https://capstreet.multisites.ai/_astro/ceo-summit-awards.RPn2Lp5__1amMTd.webp) ## Dealer operations focus Capstreet targets tools that change how dealerships run. ## Four named areas Sales, marketing, finance and insurance, and service lane operations. ## Current investments Protomiq and informativ are both listed as current, Fund V. ## Why does Capstreet invest in automotive? Capstreet backs technology companies that help automotive dealerships operate better. It says it has made several recent investments in this sector and wants to partner with innovative, growing businesses. Capstreet states its view this way on its [What We Do](https://capstreet.multisites.ai/what-we-do) page: > With several recent investments in the automotive technology sector, we’re a thoughtful partner for innovative, growing businesses that are helping transform dealer operations. Within the automotive tech landscape, we target solutions that enhance sales, marketing, finance and insurance, and service lane operations for automotive dealerships. The word to notice is “recent.” Both automotive companies in the portfolio are listed as current investments, so the firm is learning this market now, not looking back on it. That matters if you want a partner who already knows how dealers buy software. The focus is also tight. Capstreet does not say it invests across all of automotive. It names dealer operations and four areas inside them. ## What kinds of automotive businesses fit Capstreet? A fit is a growing technology company that sells to automotive dealerships and improves sales, marketing, finance and insurance, or service lane work. Area What Capstreet describes Sales Tools that help dealerships win and close customers Marketing Tools that bring shoppers to the dealership and its website Finance and insurance (F&I) Solutions for the finance and insurance office Service lane operations Tools that support the dealership service department Customer Automotive dealerships Compare your product to those four areas. A company with one clear job inside the dealership can fit, even if it also touches a second area. The firm’s [criteria](https://capstreet.multisites.ai/deal-criteria) also apply, so check your EBITDA and your owner team too. ## How do Capstreet’s criteria apply to automotive companies? Capstreet publishes five criteria, and they apply to automotive owners the same way they apply to every other industry. Each one is listed below. - Entrepreneur-owned businesses services companies - $3 to $15 million of EBITDA - Primarily majority investments - Entrepreneurs reinvest alongside Capstreet - Ability to apply the Capvalue Framework® The firm also says it looks for “a tenured team of owners or managers seeking a majority capital partner, with solid financials, a defensive business model, untapped growth potential, and competitive advantages within their market niche.” Dealer software often sells on a subscription or recurring basis. A business with steady customers, solid financials and a defensible niche matches the defensive model Capstreet describes. Dealerships run on a few core systems, so a product that fits daily workflow can be hard to replace. That is our view, not a Capstreet statement. Its $3 to $15 million EBITDA range sits in what many call the [lower middle market](https://capstreet.multisites.ai/glossary/lower-middle-market). [EBITDA](https://capstreet.multisites.ai/glossary/ebitda) means earnings before interest, taxes, depreciation and amortization. It is the profit measure Capstreet’s range uses. In a buy and build plan, the first business is the [platform company](https://capstreet.multisites.ai/glossary/platform-company), and later purchases are added to it. ## Which automotive companies has Capstreet backed? Capstreet lists two automotive companies in its portfolio. Both are current investments in Fund V. Status is shown as Capstreet publishes it on its [portfolio](https://capstreet.multisites.ai/our-companies) pages. - **[informativ](https://capstreet.multisites.ai/portfolio/credit-bureau-connection)**: Current, Fund V. Credit report and compliance solutions for the automotive and general consumer finance industries. Its cloud-based products automate the consumer finance qualification process, with a heavy emphasis on compliance and identity verification for auto dealers and lenders. Founded in 2004 and headquartered in Frisco, TX. - **[Protomiq](https://capstreet.multisites.ai/portfolio/protomiq)**: Current, Fund V. Formerly TradePending. Conversion-focused website tools for automotive dealerships across North America. The platform helps dealerships turn website traffic into sales opportunities through trade valuations, payment estimates, offers and service engagements. Founded in 2014 and headquartered in Atlanta, GA. ## What does Capstreet do after it invests? Capstreet applies its [Capvalue Framework®](https://capstreet.multisites.ai/building-greatness) in three steps: Research, Build Scalable Platform, and Drive Business Transformation. Across its history, the firm reports 50+ Platform Acquisitions and 200+ Add-on Acquisitions. 1. **Research.** Perform deep research to identify markets and build relationships with key entrepreneurs. 2. **Build Scalable Platform.** Invest in top talent and technologies, and provide functional expertise for scale. 3. **Drive Business Transformation.** Develop a long-term strategic roadmap and execute a buy and build strategy. Capstreet does not publish an automotive case study. The portfolio pages above describe what each company does today. There can be no guarantee that Capstreet will be successful in applying its Capvalue Framework®. ## Next step If your company serves automotive, read the full [deal criteria](https://capstreet.multisites.ai/deal-criteria), then start a confidential conversation through the [contact page](https://capstreet.multisites.ai/contact). You can also call 713-332-2700 or email [connect@capstreet.com](mailto:connect@capstreet.com). See all [industries](https://capstreet.multisites.ai/industries) Capstreet lists. ## Frequently asked questions ### What automotive companies does Capstreet invest in? Capstreet invests in automotive technology companies that serve dealerships. It targets solutions for sales, marketing, finance and insurance, and service lane operations. Owners should also meet the firm's general criteria, including $3 to $15 million of EBITDA and a team that wants a majority capital partner. ### Does Capstreet invest in car dealerships? Capstreet's published automotive thesis is about technology that helps dealers, not dealerships themselves. The portfolio shows software for credit reporting and compliance and for dealer website tools. If you own a dealership group, ask the firm directly before you assume a fit. ### Which automotive technology companies are in the Capstreet portfolio? Two: informativ, which offers credit report and compliance solutions, and Protomiq, which builds website tools for dealerships. Both are listed as current investments in Fund V. You can read each company's published description on its portfolio page. ### Is Capstreet still investing in automotive technology? Capstreet says it has made several recent investments in the sector and calls itself a thoughtful partner for growing businesses in it. Both automotive portfolio companies are listed as current. The firm invites owners to reach out through its contact page. ## Terms on this page - [Lower Middle Market](https://capstreet.multisites.ai/glossary/lower-middle-market) - [Platform Company](https://capstreet.multisites.ai/glossary/platform-company) - [Buy and Build](https://capstreet.multisites.ai/glossary/buy-and-build) - [EBITDA](https://capstreet.multisites.ai/glossary/ebitda) ## Automotive companies we have backed - [**informativ**Current · Automotive](https://capstreet.multisites.ai/portfolio/credit-bureau-connection) - [**Protomiq**Current · Automotive](https://capstreet.multisites.ai/portfolio/protomiq) ## Keep reading - [Construction technology private equity for software ownersCapstreet believes technology can drive large changes in construction efficiency and project delivery. It targets software businesses that support project and financial management for general contractors and sub-contractors. The firm sees the industry as early on its technology adoption curve and looks for owners with $3 to $15 million of EBITDA.](https://capstreet.multisites.ai/industries/construction) - [Insurtech private equity for carrier-focused companiesCapstreet invests in insurtech businesses that improve how insurance carriers operate. It looks for technology-enabled services and software in digital sales enablement, underwriting, service and administration, and claims management. Owners should have $3 to $15 million of EBITDA and want a majority capital partner.](https://capstreet.multisites.ai/industries/insurance) - [Legal services and legal technology private equityCapstreet believes the legal services and technology market remains fragmented and under-adopted. It says it has a strong track record of helping businesses scale where those conditions exist, plus specific experience with the nuances of the legal industry. It looks for owners with $3 to $15 million of EBITDA.](https://capstreet.multisites.ai/industries/legal) - [Transportation and logistics technology private equityCapstreet invests in supply chain technology companies in transportation and logistics. It targets track and trace, transportation and warehouse management systems, e-commerce and omnichannel tools, procurement software and supply chain analytics. The firm sees fragmented technology as an opening, and looks for owners with $3 to $15 million of EBITDA.](https://capstreet.multisites.ai/industries/transportation-logistics) - [Government technology (GovTech) private equityCapstreet believes government technology is behind on adoption but could gain large efficiency from specialized vertical software. It says GovTech shares the attractive traits of other stable, regulated industries where the firm knows how to help businesses scale. It looks for owners with $3 to $15 million of EBITDA.](https://capstreet.multisites.ai/industries/government) - [Hospitality and foodservice technology private equityCapstreet believes hospitality and foodservice are being transformed by technology as consumers order, manage, track and pay for services electronically. The firm also sees a highly fragmented sector with rapid innovation. It looks for owners with $3 to $15 million of EBITDA who want a majority capital partner.](https://capstreet.multisites.ai/industries/hospitality) ## Ready to get started? Let’s talk. Tell us about your company and what you want next. Conversations are private, and there is no obligation. [Start a conversation](https://capstreet.multisites.ai/contact) [(713) 332-2700](tel:+1-713-332-2700)[connect@capstreet.com](mailto:connect@capstreet.com) ![Capstreet team members at a Houston elementary school for Houston Reads Day](https://capstreet.multisites.ai/_astro/houston-reads-day.DxNd9bIr_tggWP.webp)