Storage facility Exchange, a start-up that describes itself as the Airbnb of storage facility space, has raised $2.2 million in seed financing.
The business was established Jonathan Rosenthal (CEO of Saybrook Management) and Dan Pimentel (formerly CFO/COO of startup Center TELEVISION). They just recently caused former eHarmony CEO Grant Langston as the Storage facility Exchange’s president.
Langston confessed that his brand-new job may sound pretty various from running an online dating company, but he stated that in both cases, it’s actually about using innovation to construct a market.
In the case of Warehouse Exchange, Langston stated the opportunity depends on the truth that “companies that wanted storage facility space were not welcome in warehouses.” Specifically, there are a lot of new e-commerce business that want “smaller sized footprints for shorter time periods and wish to handle their own stock,” but especially pre-pandemic, most of the third-party logistics companies (known as 3PLs) running warehouses weren’t thinking about that company.
So Warehouse Exchange has actually created a market connecting occupants with flexible storage facility space– Langston stated companies are renting space through the marketplace for approximately 11 months (though it normally starts with a much shorter amount of time and then gets extended).
Warehouse Exchange CEO Grant Langston In fact, the company stated it’s seen 22,000 searches on its website in the past 18 months. The warehouse space, on the other hand, may not come from standard storage facility operators, however instead from other organizations that have extra area that they want to generate income from.
Langston added, “3PLs are normally not thinking about this little e-commerce need, however what has occurred in the last 8 weeks is that a great deal of these companies have actually lost their anchor tenant and require to reassess their profits.”
In order for a storage facility shift to this design, Langston said some rethinking is required, however “the facilities is quite light”– typically, you simply partitions to separate various parts of the storage facility.
Offered the more comprehensive concerns about storage facility security during the COVID-19 pandemic, I also asked about who is accountable for those concerns within the storage facilities. Langston said it’s up to the individual renters, noting that in most cases it’s simply someone running an e-commerce organisation, which “in a basic sense, there’s not a great deal of intermingling between renters.”
The new funding originates from investors consisting of Xebec Real estate. Langston said he’s already working to raise a Series A, with a target of $6 to $7 million.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.