Neighbor Lands $2.5M Seed Funding
SALT LAKE CITY, UT, Neighbor announced it has received $2.5 million in seed funding from Peak Ventures and Pelion Ventures.
Today Neighbor announced it has received $2.5 million in seed funding from Peak Ventures and Pelion Ventures to make self-storage cheaper, safer, and more convenient for communities across the US.
Neighbor connects people who have unused space in their homes, garages or apartments to renters who are looking for affordable storage
"In 2017, Americans spent roughly $38 billion on storage. Neighbor not only offers renters a cheaper and safer solution, but provides a way for hosts to make money off of that same market," said Joseph Woodbury, CEO of Neighbor. "We've spent the last year creating a stellar product and building a strong local network of renters and hosts here in Utah. Now we're ready to take this funding and focus on building even more of Neighbor's self-storage communities across the US."
Neighbor's platform puts local "renters," or people in need of storage space, in touch with nearby "hosts" who are willing to lease extra storage space in their home or garage. This allows renters to store anything from boats and trailers to boxes of extra stuff in nearby basements, closets and garages for 50 percent the cost of traditional self-storage. In turn, Neighbor hosts are able to make thousands of dollars per year in residual income, simply by letting their empty space do a little extra work. In fact, 85 percent of Neighbor's profit is paid directly to its community of hosts.
"When we saw what Neighbor was doing, we were blown away by the potential," said Chad Packard, investor at Pelion Ventures. "The concept is simple and straightforward, the market potential is incredibly high, and the team is whip-smart. We knew really quickly that we wanted to work with them."
With the funding, Neighbor is launching a proprietary "store with a friend" feature, which connects Neighbor to a user's Facebook profile to show which friends or mutual friends are also hosts or renters on Neighbor's platform. This feature will offer users even more personalized, localized and trustworthy storage options while helping hosts advertise their storage spaces to friends and family on social media.
"Neighbor is solving two of the most important consumer pain points in this industry--price and convenience," said John Mayfield, investor at Peak Ventures. "Not only does Neighbor have an attractive business model, it also gives consumers an attractive alternative to industrial storage units. We're excited to see how this company changes the self-storage paradigm."
Founded in 2017, Neighbor is a peer-to-peer self-storage company based in Salt Lake City, Utah. The company connects people who have unused space in their homes, garages or apartments to renters who are looking for affordable storage. Neighbor benefits renters by providing safer, more accessible storage for half the price of a traditional self-storage unit, while giving hosts the opportunity to earn thousands of dollars per year from their empty space. Neighbor's team helps keep the connection safe, easy and friendly, so that good neighbors everywhere can help each other out. Learn more about Neighbor at storewithneighbor.com, or Facebook.com/storewithneighbor.
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