Series A · $3.5M Raise · February 2026

Invest in the Future
of Automotive AI

We are building the operating system for the $645.66B automotive retail market. Early traction. Exceptional team. The window is now.

invest@testdrive.com View Terms
$645.66B
TAM
US Auto Retail Market
$3.5M
Raise
Series A SAFE Note
$12M
Cap
Valuation Cap
60%
Close Rate
AI-Matched Leads
50%+
CAC Cut
Dealer Savings
$57.2M
Yr 5 ARR
2029 Projection

Why Invest in TestDrive AI?

Three convergent forces creating a rare venture-scale opportunity.

First-Mover Advantage

The automotive AI space is nascent — less than 3% penetration. We are live, proven, and scaling while competitors are still in planning mode.

$645B market, 3% AI penetration

Proven Traction

60% close rates, 50%+ CAC reduction, 89+ test drives booked in pilot month. The data validates the model before the raise closes.

Real results from real dealers

Defensible Technology

Purpose-built automotive LLM with VIN-level matching, proprietary buyer behavior data, and a network effect that compounds with every dealer added.

Automotive-specific AI moat

Real Traction, Real Data

Not projections — pilot results from live dealer deployments in Q4 2024.

89
Test Drives Booked
In first month of pilot deployment at Metro Ford
60%
AI Lead Close Rate
vs. 23% industry average — across all pilot dealers
50%+
CAC Reduction
Average cost-per-customer-acquisition savings
$150
Per Drive Revenue
Transparent flat fee — 100% collected upfront
3x
ROI for Dealers
Average return on investment in first 60 days
83%
Consumer Demand
Buyers who expect AI assistance when car shopping
"

"Our close rate jumped to 60% on AI-matched test drives. Nothing we've tried in 15 years of automotive retail comes close to this level of performance. TestDrive AI is the future of how cars get sold."

Marcus Johnson
General Sales Manager — Houston Auto Group (Pilot Dealer)

Three Compounding Revenue Streams

Each stream reinforces the others — creating a durable, high-margin business model.

SaaS Subscription

$299–$999/month per dealer location. Recurring, predictable revenue with 65% gross margin. Target: 1,200 dealers by Year 3.

$299–$999/mo per dealer 65% gross margin

Transaction Fees

$150 per test drive booked through the platform. Direct, performance-based revenue that aligns incentives.

$150 per test drive 100% upfront collection

Data & Analytics

Anonymized buyer behavior data sold to OEMs, lenders, and insurance partners. High-value, low-cost revenue stream.

Coming in Year 2 $50-200 per dataset

Unit Economics — Per Dealer

Metric Value Notes
Annual Contract Value (ACV) $3,600–$11,988 $299–$999/mo SaaS
Lifetime Value (LTV, 5yr avg) $18,000 Based on 85% retention rate
Customer Acquisition Cost (CAC) < $1,800 50%+ below industry avg
LTV : CAC Ratio 10 : 1 Best-in-class SaaS benchmark
CAC Payback Period < 6 months Full payback before Year 1 end
Gross Margin (SaaS) 65% After infrastructure & support
Test Drive Revenue / Dealer / Month $1,500–$13,350 10-89 drives @ $150 each
Combined Monthly Revenue / Dealer $449–$2,109+ SaaS + test drives blended

5-Year Financial Projections

Conservative model built on verifiable unit economics and controlled dealer network expansion.

Metric 2025 2026 2027 2028 2029
Active Dealers 25 85 250 620 1,200
ARR $1.41M $4.2M $12.8M $31.5M $57.2M
Test Drive Revenue $337K $1.1M $3.2M $8.4M $16.1M
Total Revenue $1.75M $5.3M $16M $39.9M $73.3M
Gross Margin % 47.5% 52% 58% 63% 67%
EBITDA ($1.8M) ($0.9M) $1.2M $8.4M $22.1M
Headcount 8 18 45 95 180
Valuation (est.) $12M $38M $115M $300M+ $600M+

* Projections are forward-looking estimates and subject to market conditions. Consult the full data room at invest@testdrive.com

Use of Proceeds — $3.5M

Capital deployed with precision to hit key milestones before Series B.

Product & AI Development
TD Engine v3.0, voice AI, API integrations, mobile app
35%
$1.225M
Sales & Marketing
Dealer acquisition, brand campaigns, 15-20 metro expansion
30%
$1.05M
Operations & Infrastructure
Cloud scaling, CRM, customer success, dealer support
20%
$700K
Legal & Compliance
IP protection, state licensing, franchise regulation
10%
$350K
Working Capital Reserve
Bridge to Series B, contingency fund
5%
$175K

Investment Terms

Simple, transparent terms designed to attract aligned, long-term investors.

Series A — SAFE Note

Raise Amount
$3,500,000
Target Series A round
Instrument
SAFE Note
Simple Agreement for Future Equity
Valuation Cap
$12,000,000
Pre-money valuation cap
Discount Rate
20%
On next priced equity round
Minimum Investment
$25,000
Per individual investor
Round Stage
Pre-Series A
Prior to institutional priced round
Pro Rata Rights
Included
Right to follow-on investment
MFN Clause
Yes
Most Favored Nation protection
Use of Funds
See breakdown above
Product, Sales, Operations, Legal
Target Close Date
March 2026
Subject to investor commitments
Lead Investor
TBD
Seeking lead with auto/fintech focus

Our Competitive Moat

Automotive AI Specificity

Our LLM is trained on automotive data — VINs, trim levels, dealer incentives, financing structures. Generic AI cannot replicate this in under 3 years.

Network Effects

Every new dealer adds buyer data. Every buyer interaction improves match quality. The platform compounds in value with scale.

System Integrations

Deep integrations with DMS systems (CDK, Reynolds & Reynolds), inventory feeds, and CRM platforms create high switching costs.

First-Mover Data

We are accumulating the world's largest dataset of AI-assisted automotive transactions — a proprietary asset no competitor can replicate.

Key Milestones with This Capital

Month 3

25 → 85 Active Dealers

Expand from pilot to 85 signed dealer agreements across 5 metros.

Month 6

TD Engine v3.0 Launch

Voice AI, advanced F&I matching, lender API integrations.

Month 9

Mobile App Launch

iOS + Android app for buyers; dealer app for real-time lead management.

Month 12

Breakeven Unit Economics

Each dealer cohort cash-flow positive. Institutional Series B pipeline.

Month 18

Market Breakeven

Company-level EBITDA breakeven. 250+ dealers. $16M ARR run rate.

Month 24

Series B

$15-25M Series B raise. National expansion. Data revenue stream live.

Why the Window is Now

AI adoption in automotive retail is at the same inflection point as eCommerce in 2003. The next 24 months will determine the category leaders. We have the technology, the traction, and the team — we need capital to capture it.

83%

Consumers demand AI in car buying — and dealers have nothing to offer them yet.

$4.8B

Wasted on digital ads with no AI follow-through. We convert what others abandon.

<3%

Current AI penetration in auto retail. The category is wide open.

Ready to Invest?

Request the full data room, cap table, and SAFE agreement. We respond within 24 hours.

invest@testdrive.com
Minimum investment: $25,000 · SAFE Note · $12M valuation cap
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