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- The share economy is booming, with giants like Airbnb and Rent the Runway as well as a long list of smaller startups targeting specific markets.
- From construction equipment and RVs to party supplies and luxury jewelry, consumers have the ability to rent almost anything. Some of these startups are peer-to-peer, while others offer an inventory of rentable items.
- We took a look at 15 startups and their VC backers in the share economy.
- Click here for more BI Prime stories.
Rent the Runway has shoppers renting everything from high-end designer clothes to everyday staples, and Airbnb lets users share entire homes or even spare rooms.
Similar apps and websites have sprung up all around the country offering digital-forward twists on the not-so-new business of renting second-hand items.
Be it for cost, convenience, or storage constraints, US consumers are getting used to the idea of sharing through both peer-to-peer platforms and direct-to-consumer sites.
While some offer users the option to buy their rented items, many of the brands say they’re helping consumers shop more sustainably by sharing things they may only use once or twice.
And this all plays into a bigger theme: the changes in the way we buy and pay.
Here’s a look at 14 startups that are changing the way consumers think about shopping — and the VC money that’s backing them.
SEE ALSO: Payments giants like PayPal and Amex are helping transform how we shop with bets on startups like Klarna, Rent the Runway, and Instacart. Here’s what they’re investing in and why.
SEE ALSO: 4 startups are changing the way millennials pay for brands like Casper and Warby Parker and have attracted investors including Andreessen Horowitz and Snoop Dogg
The Black Tux
Total raised: $62.6 million
Last round: $30 million Series C in March 2018
Key investors: First Round Investors (Blue Apron, Uber, Warby Parker), Lerer Hippeau (Allbirds, Everlane, Glossier), Menlo Ventures (Betterment, Chime, Roku)
Santa Monica-based men’s formal wear startup The Black Tux offers a modern twist on tuxedo rental. While they have nearly 30 standalone or Nordstrom-based showrooms, the startup offers at-home try on’s for a complete look, including suits, shirts, and shoes.
For sizing, the startup says there’s no tape measure required. They have an online survey that collects your height and weight then an algorithm that predicts the right fit.
Boatsetter
Total raised: $31 million
Last round: $10 million Series A in August 2019
Key investors: Global Founders Capital (Brex, Capsule, HelloFresh), Great Oaks Venture Capital (Acorns, EquipmentShare, OkCupid), Valor Equity Partners (Bird, Chime, SpaceX).
Boatsetter is a Florida-based peer-to-peer boat renting platform. The startup offers boat owners a platform to rent out their boats for the day, and even has an optional captain service.
Founded in 2012, the website has nearly 20,000 boats listed and is available in 600 locations globally.
EquipmentShare
Total raised: $58 million (TBC – one undisclosed round)
Last round: $26 million Series B in January 2017
Key investors: Insight Partners (Shopify, HelloFresh, N26), Great Oaks Venture Capital (Acorns, Boatsetter, OkCupid), Y Combinator (Airbnb, Dropbox, Stripe)
EquipmentShare is a platform for contractors to list and rent construction equipment from power tools to bulldozers.
The Missouri-based Y Combinator alum (Winter 2015) was founded in 2014 by two brothers who say they got the idea from growing up in a socialist commune, where they weren’t allowed to keep personal possessions.
EquipmentShare has facilities in 19 states in the US and an outpost in New Zealand. In addition to its platform, EquipmentShare offers a proprietary technology called Track, which gives contractors the ability to monitor health and use of the machine.
Fat Llama
Total raised: $13 million
Last round: $10 million Series A in April 2018
Key investors: Funders Club (Coinbase, Instacart, Scentbird), Greylock Partners (Airbnb, Coinbse, GoFundMe), Y Combinator (Airbnb, Dropbox, Stripe)
Fat Llama is a peer-to-peer rental platform where you can find “almost” anything. Users can also buy and sell their items, which range from drones to tents to musical instruments. Fat Llama offers up to $30,000 of insurance to lenders if items are lost, stolen, or damaged.
The London-based Y Combinator alum (Spring 2017) was founded in 2016 and is available in the UK and US.
Feather
Total raised: $16 million
Last round: $12 million Series A in May 2019
Key investors: Bain Capital Ventures (Acorns, Lime, Rent the Runway), Kleiner Perkins (Brex, Instacart, Rent the Runway), Spark Capital (Glossier, Postmates, Warby Parker)
Feather is a direct-to-consumer furniture rental service that offers both memberships — it costs $19 per month and members get up to 75% off the cost of furniture — and ad hoc rentals. Feather also offers delivery and assembly.
Both members and non-members pay monthly rates on each piece of furniture they rent with the option to ultimately buy the pieces at retail cost.
Feather is a Y Combinator alum (Spring 2017) and was founded in 2017 and operates out of New York with footprints in San Francisco, Los Angeles, and Orange County.
Flont
Total raised: $5 million
Last round: $5 million seed round in October 2017
Key investors: C Ventures (Galore, Moda Operandi, VillageLuxe), Carmen Busquets (Flowerbx, Tagwalk, VillageLux) StartEngine crowdfunding
Flont is a jewelry rental subscription platform where users can borrow luxury jewels from brands like Cartier, Bulgari, and Tiffany & Co.
Membership starts at $59 per month and goes up, depending on the borrow value limit you want — the priciest option is $379 per month to borrow up to $8,000 of jewelry at once, with on return dates.
Founded in 2016, Flont is based in New York where it has a showroom for members to visit.
Joymode
Total raised: $16.7 million
Last round: $14 million Series A in January 2018
Key investors: Collaborative Fund (Beyond Meat, Impossible Foods, Lyft), Founder Collective (BuzzFeed, SeatGeek, The Black Tux), Homebrew (Chime, Finix, The Skimm)
Joymode started as a membership-based online platform that would rent you almost anything, from food dehydrators to kids toys to popcorn machines.
But now, it’s shifting its model from an online marketplace to a brick and mortar rental service. That means closing down its California warehouse. To get rid of inventory, the startup is currently selling its products at a discount online before.
Joymode plans to now open stores within other stores, like Walmart, where customers can rent items in person.
Kitsplit
Total raised: $2.1 million
Last round: $2.1 million seed round in February 2018
Key investors: Click Ventures (Spotify, DocuSign, Palantir), Mike Krieger (Instagram co-founder), PLG Ventures (Fernish, Flowspace, Measurabl)
Kitsplit is a peer-to-peer rental marketplace for media companies and artists, offering cameras, lenses, lighting, and audio equipment. It launched in New York, and is now available in around 100 US cities.
It’s used by big media companies like Vox and National Geographic as well as smaller production teams and filmmakers.
Outdoorsy
Total raised: $75 million
Last round: $50 million Series C in January 2019
Key investors: Autotech Ventures (Bus.com, Lyft, SpotHero) Greenspring Associates (Chewy, Everlane, Grubhub), Tandem Capital (Me.me, Tile, Yardzen)
Renting an RV isn’t new, but Outdoorsy is an Austin-based startup bringing back the classic family vacation vehicle for millennials looking for alternatives to hotels.
Outdoorsy, founded in 2015, is a platform where RV owners can list their vehicles. Both owners and renters are offered insurance through the platform to protect against any damages. It has a global footprint including a presence in the US, Canada, Australia, and Europe.
Neighbor
Total raised: $12.7 million
Last round: $10 million Series A in January 2020
Key investors: Album VC (Divvy, Mx, Wooly), Andreessen Horowitz (Airbnb, Instacart, Lyft), Pelion Venture Partners (Deserve, Firefly, Mx)
Neighbor is a peer-to-peer storage company connecting those with extra space with those who need some.
Founded in Utah in 2017, Neighbor offers users places to store their boxes, cars, even boats. Neighbor offers a $2 million host guarantee, and a $25,000 renter guarantee to protect both sides of the marketplace.
Revel
Total raised: $31.6 million
Last round: $27 million Series A in October 2019
Key investors: Justin Mateen (co-founder of Tinder), Launch Capital (Spotify, Snapchat, Qeepsake), Maniv Mobility (Bolt Bikes, Ridecell, Turo)
Revel is a moped rideshare platform that lets users find, unlock, and ride electric scooters. It’s currently available in New York, Austin, Miami, Oakland, and DC. Its CEO has said he hopes to be in 10 cities by mid 2020.
Revel scooters come equipped with two helmets, go up to 30 miles per hour, and cost $0.25 per minute riding. To ride, users have to be licensed to drive, over 21 years old, and pass the safe driving history check.
Revel started with its pilot in Brooklyn in 2018, before rolling out fully in 2019.
Swimply
Total raised: $1 million
Last round: $1 million pre-seed round
Key investors: Undisclosed
Swimply is a peer-to-peer poolsharing startup that lets homeowners cash in on their swimming pools. Launched last summer, the platform is available in 36 states, Canada, and Australia.
The average price is about $45 per hour, depending on the size, amenities, timing, and demand. Swimply partners with local pool service companies to ensure the listed pools are kept clean.
Turo
Total raised: $437 million
Last round: $250 million Series E in July 2019
Key investors: August Capital (Bill.com, HipCamp, Sun Basket), GV (Lime, Nest, Uber) Kleiner Perkins (Brex, Instacart, Rent the Runway)
Turo is a peer-to-peer car sharing unicorn, valued at over $1 billion, that connects car owners with drivers. Turo is available in the US, Canada, the UK, and Germany.
The platform has high-end sports cars, trucks for moving, and larger options for road tripping. Turo aims to be an alternative to car rental companies. Turo has also partnered with Nissan to give prospective buyers the opportunity to test drive, where some customers are offered a cash bonus toward the cost of the vehicle if purchased.
Wardrobe
Total raised: $1.5 million
Last round: $1.5 million seed in November 2019
Key investors: Cyan Banister (Affirm, ClassPass, Postmates), Ludlow Ventures (Honey, Scentbird, Wag), Secocha Ventures (Brigit, Eaze, ePayLater)
Wardrobe is another peer-to-peer closet share app exclusively for New Yorkers, for now. It runs out of hubs — the storefronts of dry cleaning chain Next Cleaners — across the city, but users can also request to have items shipped to them.
Wardrobe offers vintage, luxury, and designer clothes on its app. Founded in 2018, it has over 40 hubs for users to pick up their requested rental items.
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