Newswise — On September 15, a San Francisco-based company named SideCar—creator of a disruptive transportation app—made headlines when it announced its new $15 million round of financing. Guess who joined Avalon Ventures and Union Square Ventures as investors? None other than Richard Branson, who said, “I like companies that are innovative, offer exciting customer experiences and make the world better. Transportation has been ripe for disruption for decades. An entrepreneurial company like SideCar can take on the big guys with innovation and big ideas, not just big bank accounts.”

SideCar competes directly with Uber and Lyft as it allows everyday people to use their own vehicles to offer rides, but the company has unique features. Back in February, it shifted to a marketplace model where drivers set their own prices and riders get to pick their own rides and drivers based on cost, vehicle quality and other options. Uber and Lyft, meanwhile, still dictate fares and assign drivers with passengers.

One man with a unique perspective on the new round of funding is Rich Levandov, one of seven partners at Avalon Ventures, which has founded and/or funded more than 100 early-stage information technology and life sciences companies—including SideCar—throughout its 30-year history. All of Avalon’s partners are seasoned entrepreneurs with experience in company formation, operations and value creation in the life science and tech sectors, and Levandov is no exception. Levandov holds a B.S. from Binghamton University and is active in the Boston, New York City, San Francisco and Seattle venture and entrepreneurial communities. It was only after Levandov co-founded Phoenix Technologies, a company that helped launch the PC revolution, and served as an early Vice President at America Online, Inc. that he started his venture capital career.

Levandov notes that SideCar differentiates itself with innovation. It was the first ride-sharing app to add the option to split a fare with a second rider and the first to allow users to choose their own driver.

“Normally, transportation is a luxury good,” Levandov says. “Limos, taxis, even Uber and Lyft are expensive. SideCar is now changing this, with its emphasis on ride-sharing that will truly bring costs down. It will offer all the benefits of competing services, but at a reduced cost—and it’s social as well, which is especially valuable for users in big cities. It’s a great way for the under-30 crowd to get around in cities without owning a car. Now they can share transportation for less cost than a bus or a taxi. Furthermore, SideCar allows validated drivers to become transportation entrepreneurs for ride sharing. For the cost of a cappuccino, SideCar is disrupting the trillion-dollar transportation industry.”

On the topic of Avalon Ventures’ overall investing philosophy, Levandov notes, “There’s always risk: people risk; product risk; competition risk; syndication risk; patent risk; business model risk. That’s why it’s called ‘risk’ capital. Patient money will do just fine because it will encourage productive and tight burn rates. Sadly, some investors don’t want their money to sit—so they sometimes push what is rational and reasonable. Risk can be mitigated by focusing on great people and capital efficiency that is vying to disrupt large markets. Risk will always fall on entrepreneurs and capital partners to develop products that make sense and are absorbable by the market. Deep domain expertise, experience and passionate thinking will always be in demand and drive innovation.”

With investors like Levandov and his Avalon Ventures colleagues behind innovative companies like SideCar, the future of ride sharing looks bright indeed. And Richard Branson seems to agree!