Chicago Startup: SpotHero Raises $2.5 Million

Spothero,Chicago startup,startups,funding,startup newsA Chicago startup that was developed after the cofounders had received over $3,000 in parking tickets, has now raised $2.5 million dollars. SpotHero, an app that allows users to find parking spots on their smartphone, was well received by the city of Chicago.

At first sight the startup seems very similar to Baltimore startup ParkingPanda, however SpotHero boasts 24 hour customer support and touts that they are superserving Chicago first and building a loyal customer base before eventually branching out. Chicago seems to love SpotHero as well. Since their launch in 2011 the company reports that more than 10,000 people have used their iPhone app and website platform to find parking spots.

SpotHero’s iPhone app allows drivers to reserve parking spots on the go, something that ParkingPanda is just now having developed through MindGrub. ParkingPanda is a web based platform that allows people to book parking spots from either individuals like driveways and curbside spaces, or public lots that have extra spots to rent. Both services allow the user to pick how long and when they want to start the parking spot rental.

SportHero was part of the most recent class at Excelerate Labs one of Chicago’s thriving startup accelerators. SpotHero just recently presented at Excelerate Labs’ August demo day.

“How many times have you been frustrated by parking? We created SpotHero to solve this problem by helping drivers get the right spot with just a few clicks” says SpotHero CEO and Founder Mark Lawrence.

Battery Ventures, 500 startups, David Cohen’s Bullet Time, e.Ventures, OCA Ventuers, New World Ventures, Light Bank and Draper VC all participated in the round led by Battery.
Part of the attraction to investors is that SpotHero has already brought in over $2,000,000 in revenue to parking operators at some of the largest national parking companies.  “Our parking partners know that their customers are online and looking for convenience, that is what we deliver – while helping the lots fill their unused spaces with paying customers ” says Lawrence

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