By Nancy Dahlberg The Miami Herald
WWR Article Summary (tl;dr) Boatsetter attempts to make the boat rental experience as seamless as booking a room on Airbnb by connecting people seeking rentals with boat owners looking to monetize the time their boats aren't used.
The Miami Herald
South Florida is already one of the world's great boating capitals.
Now the region can also claim to be a boat-sharing industry leader, as more people seek out accessible ways to get out on the water and more boat owners oblige by turning their pleasure crafts into money makers.
Boatsetter, a peer-to-peer marketplace for boat rentals, has acquired its Seattle-based rival Boatbound, powering up the South Florida startup's presence throughout the United States.
The Aventura-based company also announced that it has raised an additional $4.75 million in funding, on top of the $13 million announced in December, to fund its international expansion.
Like others in the boat-sharing economy, Boatsetter attempts to make the boat rental experience as seamless as booking a room on Airbnb by connecting people seeking rentals with boat owners looking to monetize the time their boats aren't used.
But Boatsetter differentiates itself by giving its users access to a large network of licensed captains as well as a growing roster of high-end boat rentals for yachting, cruising, fishing or sailing, 24/7 customer support and insurance coverage for renters, boat owners and captains.
"This acquisition now makes us the No. 1 peer-to-peer boat rental community in the United States hands down," said Jaclyn Baumgarten, CEO and co-founder of Boatsetter, who wouldn't disclose terms of the deal. "It means about 5,000 quality vessels ready to be rented, it brings us 1,500 U.S. coastguard licensed captains, it will mean about 10,000 transactions between the companies in 2017 and it brings us 300 locations."
Baumgarten said the acquisition particularly expands Boatsetter's inventory in Chicago, Los Angeles, Seattle and Washington, DC.
"Additionally, we will be getting some great new talent from the Boatbound team, and we will be relocating them and the entire Seattle office to South Florida with us -- a true Miami startup expansion," said Baumgarten, in an interview with the Miami Herald on Wednesday. Boatsetter's team will grow to 27 employees.
While accelerating operations in the U.S. five-fold is the goal for 2017, Baumgarten said, the acquisition and additional funding will also help fuel Boatsetter's international expansion in 2018. Boatsetter plans to focus first on the Caribbean and Mediterranean, driving demand through global partnerships. It already has "phenomenal boats" in Bali, Ibiza, Mexico and South Africa, she said.
"This market is ripe for consolidation and I believe we are strongly positioned to lead that consolidation," Baumgarten said. "We worked with a third-party investment bank and they value the peer-to-peer and charter business at $50 billion that we expect in the years to come to grow to $100 billion. That's a huge opportunity and we are primed to lead a roll-up strategy over the years to come globally."
To that end, Boatsetter extended its Series A round, adding $4.75 million in funding to the $13 million the company raised in December. Key investors of the most recent round include Nordic Eye Venture Capital and the Miami-based TheVentureCity.
Laura Gonzalez-Estefani, co-founder of the TheVentureCity, which acts as an incubator for international-focused high-growth startups, said it's the "super-driven" CEO and Boatsetter team and their data-driven approach to growth, international strategy and local expertise that attracted TheVentureCity as an investor. "The numbers are astounding in terms of engagement rates. Their expansion plans are very interesting in the U.S. but also in Europe and we hope we can help them," Gonzalez-Estefani said.
The young boat-sharing industry began making waves in South Florida in 2013.
That year, Boatbound entered the market in Miami, setting up a small office in Key Biscayne and developing a local network of boats.
Peer-to-peer boat rentals were just getting started then, and rival Cruzin, led by Baumgarten, had also put down stakes in South Florida, too. As other rivals such as Sailo began expanding into the market, several locally based startups were developing, including Boatsetter, led by South Florida marine industry veteran and serial entrepreneur Andrew Sturner. Boatsetter and San Francisco-based Cruzin merged in 2015, and Baumgarten became the CEO of the combined company. Sturner is executive chairman.
As the industry has matured and consolidated, locally based technology companies serving niches of the boat rental and sales industry have emerged here too, such as YachtLife serving the highest end of the market and Boatyard to handle boat-sharing related management and maintenance tasks for the owners. Meanwhile, a large online boat-sales marketplace, Boats Group, relocated its headquarters to Miami this year.
This summer, Boatsetter began offering uniquely curated experiences through the Airbnb platform in Miami, Los Angeles, San Francisco and Barcelona, Baumgarten said. In Miami, the experiences range from watersports trips, experiences for fishing fanatics and luxury excursions with full course meals.
"We've taken boating from being a rare pastime for a fortunate few boat owners to being a universally accessible lifestyle activity for anyone with a smartphone and a credit card," Baumgarten said in an earlier interview.