Atlanta-Based Start-Up BoxedUp Discovers New Market and Investors in the Burgeoning Ecommerce Sector
In a remarkable show of resilience, the Atlanta-based start-up, BoxedUp, known for its B2B equipment rental marketplace, has found a new customer base in the industrial and construction sector, as well as new investors in a thriving ecommerce space.
The Hollywood Writers Strike and its Impact
The company had been making significant progress with a customer base largely comprised of those renting camera kits and gears when the Hollywood Writers Strike hit in 2023. The strike, which lasted for several months and led to a shutdown in film sets nationwide, significantly impacted BoxedUp’s clientele base. According to Donald Boone, the CEO of BoxedUp, the strike held a “make or break” potential for the company.
A large portion of its customer base was inactive during the strike in prominent filming areas like LA and Atlanta, stalling the company’s upwards growth trend. Determined and resilient, BoxedUp stuck its ground, recognizing that its robust B2B ecommerce platform would benefit other sectors grappling with similar challenges linked to equipment rental.
Identifying a New Consumer Base
Faced with a dwindling clientele, Boone initiated cold calls to explore what other types of businesses might be interested in the ecommerce solution his company offers. As a result, BoxedUp started gaining traction with customers in the industrial and construction field, where rental options are essential but have often been overlooked in the ecommerce world.
While online retail giants like Amazon and Shopify cater adequately to the selling needs of users, they lack robust support for businesses seeking to rent products to customers for defined periods. BoxedUp helps plug this gap, giving large rental companies – from those renting out heavy-duty construction items like roll-off dumpsters, flatbed trailers, construction containers, to loading equipment – the ability to integrate ecommerce options into their websites.
A New Seed Round Attracts Investors
Alongside gaining solid footing in the industrial and construction space, BoxedUp has also caught the attention of investors. The start-up announced a successful $2.85 million seed round led by Lavrock Ventures, based in Washington DC. Other investors participating in the round included Slauson & Co, Black Capital, Hearst Ventures, Atlanta-based Collab Capital, and Service Provider Capital.
In September, BoxedUp was staffed by seven full-time employees. The company has since enhanced its team by hiring new sales and engineering positions, helping cope with a rising demand for their services. As one of the few local marketplace start-ups to raise venture capital in the past year, BoxedUp’s ability to identify and cater to unexplored customer bases is a promising indication of the start-up’s potential.
Takeaways for Entrepreneurs
BoxedUp’s successful transition into a new customer base provides valuable lessons for emerging entrepreneurs in the start-up world — highlighting the importance of flexibility and being prepared to reshape their company’s direction in response to shifting market forces.
