Boxbee Inc., an app-based startup business specializing in valet self-storage services, has secured $5 million in Series A funding. The company will use the money toward 2015 expansion as well as further development of its technology platform and delivery operations, company officials said in a press release. The capitalization was led by Metamorphic Ventures, a New York City-based venture capital firm. It also included participation from investment firm Northgate, an unnamed home-improvement “giant,” and previous investors, including investment firm Floodgate Fund LP.
With pickup and delivery services in New York City and the San Francisco area, Boxbee targets customers in urban environments with little home storage. Similar to other valet-style storage companies, it stores customer belongings in a secure warehouse. Since launching last year, it has achieved month-over-month growth of 30 percent, according to the release.
"Boxbee's patented logistics and technology system cater to three key themes that are shaping our environment currently: mobility, demand-based and catering to urban dwellers,” said David Hirsch, managing partner of Metamorphic Ventures.
The Series A funding is the second significant capital investment Boxbee has received this year. It received $2.3 million in seed-round funding in April. "This recent round of funding will allow us to further our growth beyond our current bicoastal presence to other major metropolitan areas, and continue to provide this level of service at scale,” said Kristoph Matthews, founder and CEO of Boxbee.
Several other valet-style storage businesses have recently received investments, including CityStash Holdings LLC, Clutter Inc., The Box Butler and Unpakt LLC. In May, MakeSpace Labs Inc. raised $8 million in venture capital, while U.K.-based LoveSpace received £1.5 million via online crowdfunding. Earlier this week, Seattle-based Storrage Inc. announced its plans to raise $7 million in Series A funding next year.
Matthews believes valet storage and other on-demand services will continue to attract investors. "There will be a dramatic shift in the market, which will play out over the next year," he said. "Technology and urbanization are two main attributing factors as to the evolution of the on-demand economy, and there are no signs of either slowing down."
When customers sign up for the Boxbee service online, the company delivers storage bins to their home for free. Customers then create an inventory on the company’s website of which items are stored in each container and schedule a free pickup. The boxes are then retrieved and stored in a secure warehouse for $7.50 per month per bin. Oversized items can be stored for $20 per month. There is a $30 flat fee for the retrieval and delivery of belongings.