June 10, 2015 6:28 pm
June 10, 2015 6:28 pm
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“I feel bad when my boat sits,” said Monica Houston of Seattle, who rents out her vessel, The Infinite Sloop, on Boatbound. “I’d rather have someone else use it than no one using it.”Credit David Ryder for The New York Times
Americans own about 22 million recreational boats, and on average they use them just 11 days a year, according to the latest data from the Coast Guard. Smelling opportunity in those underexploited resources, several Silicon Valley start-ups are trying to become the Airbnb of boating, acting as online matchmakers between owners whose vessels are sitting idle and the boatless masses yearning to get on the water. Special Section: Transportation
A look at how technology is changing how we get around
“A boat is a relatively expensive asset to own and maintain,” Sascha Mornell, the co-founder and chief executive of GetMyBoat, said in an interview. To recoup those costs, he said, it makes sense for owners to rent their vessels out from time to time. Like generations of sailors before them, the entrepreneurs running what they call “pier to pier” companies are not above telling fish tales about themselves and their competitors as they scramble for position in what is still a microscopic industry. Mr. Mornell claims to run “the world’s largest platform of boat rentals,” with 30,000 boats for rent in 3,300 locations in 135 countries. His competitors, he says, offer less than a thousand boats each for rent. “We’re aggregating the entire boat rental and charter industry,” he said. Jaclyn Baumgarten, the founder and chief executive of Cruzin, says she has thousands of boats on the company website and was the first to solve the biggest hurdle in boat rentals — finding a way to provide adequate insurance to protect the owner and renter in case of an accident — only to see her archrival, Boatbound, copy her. Aaron Hall, chief executive of Boatbound, speaks dismissively of his competitors and asserts that his company created the insurance that has made the industry possible. He says Boatbound is the only substantive operator, with 10,000 boats listed by owners, although only about 2,000 are actually available to rent. Cruzin, he declared in an email, is “running on fumes.” As for GetMyBoat, “99 percent of their boats are charter boats where the companies don’t even know they are listed.” (Mr. Hall’s company, it should be noted, began life as a wedding-dress rental service before it shifted to boats. )
For all the hyperbole and smack talk, the reality is that online boat rentals are such a tiny niche market that the entire industry merited just three paragraphs in Piper Jaffray’s most recent 76-page report on the sharing economy. “We haven’t looked at it as much because it’s so much smaller than some of the other markets,” said Michael Olson, the lead author of the brokerage firm’s report. That hasn’t dissuaded Boatbound and Cruzin, which were founded in 2012, from trying to raise their first round of venture capital to fund their expansion plans. “This is a new market with huge potential,” Ms. Baumgarten said in an interview. “The fact that there are competitors in the space only proves there is a market.” She said Cruzin had seen strong interest from venture investors in funding the next stage of the company’s growth. Online boat rental is far more complicated than, say, Airbnb. The rental companies need to ensure that vessels are seaworthy, renters have the necessary skills to pilot the boats and local laws are followed. Most important, the marketplaces have to win the trust of boat owners, many of whom are leery of handing over their precious sloops and sailboats to strangers. Monica Houston, a Seattle-based organizer of high-tech hackathons, has rented out her 1974 Ericson, the Infinite Sloop, through Boatbound several times in the last year. Photo
Ms. Houston has used Boatbound, which was founded in 2012, several times in the last year.Credit David Ryder for The New York Times
“I feel bad when my boat sits,” she said in an interview. “I’d rather have someone else use it than no one using it.”
Ms. Houston said the insurance policy offered by Boatbound helped ease her concerns about renting out the boat. She communicates with potential renters about their experience level and has extensive instructions on her boat about various features, including the finicky toilet. In some cases, she has served as captain for more novice sailors for an extra fee. If she rents just the boat, the renter is charged $260 a day. She gets about $180 of that, with the rest going to Boatbound for insurance and other fees. Boat rentals have traditionally been handled by charter companies, which owners hire to manage and market their vessels. The start-ups are trying to make it easier for even owners of smaller boats to offer their vessels for rent and for potential renters to find them. But renting a boat is inherently more complex than other transactions in the sharing economy. “This is not an Uber app where you press a button and someone picks you up. There’s much more conversation back and forth between owners and renters,” Mr. Mornell said. Although costly, insurance is crucial to the peer-to-peer boat rental market, because most owners’ policies exclude commercial rentals and the cost of an accident could be high. Boatbound and Cruzin offer similar custom policies with up to $3 million in coverage per rental through Concept Special Risks, with the underlying coverage underwritten by a unit of Munich Re. (GetMyBoat offers a much more basic policy from another carrier with $25,000 in coverage. )
According to Tony Usher, the managing director of Concept Special Risks, neither Cruzin nor Boatbound created the boat insurance policies they use, which involve an elaborate review of boats’ conditions and the experience of potential renters. “We came up with the program to do this,” Mr. Usher said in an interview. “Nobody knew how to insure it except us.”
Despite the insurance, getting people to use the new platforms has been challenging. Although all three companies say they have strong growth, only Mr. Mornell would disclose the actual number of boats rented on his service: 300 reservations, worth half a million dollars, in April. Ms. Baumgarten is focused on recruiting marinas as marketing partners and creating a pool of freelance captains who can be hired to helm boats rented through Cruzin. Mr. Hall has received an investment from Brunswick, one of the biggest makers of recreational boats, and is exploring the possibility of dealers offering boats for rent through Boatbound as a way of allowing potential buyers to try before they purchase. Like the car-hailing apps, peer-to-peer boat rentals will quickly separate into one leader and some also-rans, he said. “It’s a big market, but there’s really only room for one,” Mr. Hall said in an interview.

Start-Ups Clamor to Be the Airbnb of Boats

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Women's Startup Lab's third class prepares for Silicon Valley's skewed environment
Feb 6, 2015, 6:41am PST
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Less than a mile from the Facebook campus, seven fresh-faced entrepreneurs stood recently before a group of mentors and potential investors to pitch their business, hoping to become the next Mark Zuckerberg . They were there as part of an accelerator program built to advance their business and grow their leadership skills. But while there are many accelerators in the area, only one is focused on primarily helping a group woefully underrepresented in leadership positions throughout Silicon Valley: Women. The Women's Startup Lab (WSL) accelerator, started by tech industry veteran Ari Horie two years ago, has already helped develop successful businesses. Jaclyn Baumgarten 's Cruzin.com, a peer-to-peer boat rental business that was part of the second class in 2013, already has hundreds of clients and premium million-dollar liability rental insurance. The third class of founders that presented this month began working at the Lab in late September on marketing, investment, and technology skills. The training program is run by Silicon Valley serial entrepreneurs recruited by Horie and her partners. An accelerator focused on women makes sense in the context of Silicon Valley's gender diversity problem. Last year, the Business Journal found that more than 90 percent of tech company startup founders were men. Catalyst , a non-profit organization focused on women's careers, also found that 4.6 percent of Fortune 500 employed women CEOs. The Lab's Pitch Day serves as a graduation and final test for the founders in residence. They practice the pitch for weeks leading up to the final presentation in intense, concentrated group practices. During these meetings, the mentors pepper founders with questions they are most likely to encounter in real venture capital pitch meetings. Page 1

Women’s Startup Lab’s third class prepares for Silicon Valley’s skewed environment

Fort Lauderdale
"I am a captain and I like to see people on the water and Cruzin gives people a chance to get on the water,'' said Tom Dwyer, 73, a Lantana resident who lists his two kayaks and his 20-foot and 30-foot Albury boats on Cruzin.com, which launched last year in Dania Beach. His smaller boat, called the "Risky Business," rents for $200 a day. He said it's a way to keep his boats running when he's away. Jaclyn Baumgarten, a co-founder and chief executive of Cruzin, said that "with peer to peer rental, it's a way to take that natural community that exists offline among boaters and bring it online. It's about that social experience. I think boaters are naturally social people who love spending time with friends and family. ''
Pictures: Orlando attractions that have closed
The San Francisco entrepreneur, who lived in Hollywood, Fla., to launch the platform, got the idea for the company after seeing her two brothers wrestle with the possibility of having to sell their boats because of the high maintenance costs associated with them. "I knew about Airbnb and car-sharing models,'' recalled Baumgarten, who thought the sharing economy could "create a safe experience for the renter and the boater owner. "
Baumgarten also wanted to make boating more accessible for everyday folks. She decided to launch the company in South Florida to see how the concept would work in a region known for boating. "We knew that if we could build a program that would work for Florida, that it would work anywhere,'' she said. The company has since expanded nationally. So how does it work? Boat owners log onto Cruzin for free and create a profile with photos of their boat, size and rental fee. Renters use the site to browse for boat style (from kayaks to yachts) and price. An online map features the image of a small sailboat that marks where there is a boat available. On a recent weekday, there was an 18-foot Tahoe Q3 in Boynton Beach that rented for $150 a day, while over in Sunrise, there was a Stingray available for $200 a day. "These boats are privately owned, well-loved and well-appointed,'' added Baumgarten. "They are much nicer than what one would find in a typical rental fleet. "
The company pre-qualifies renters using Experian and fraud-prevention checks. The customer also has to have at least two years boating experience, which they explain in the screening process, or they can bring a licensed captain. The boat owners are also protected by $2 million in hull insurance and $1 million in liability insurance and towing service. Cruzin gets a 40 percent cut and covers the insurance. "It's safe, easy and fun, just the way boating was meant to be,'' added Baumgarten. Other sites, including Boatbound.com and fun2boat.com, are taking a similar approach in matching people with vessels in South Florida. Aventura-based BoatSetter.com launched last February and rents boats in the 28- to 60-foot range regardless of one's experience. Recently, an eight-passenger, 28-foot boat in Boynton Beach was going for $126 an hour. The website lists designated marinas and areas to rent from, including Fort Lauderdale , Pompano Beach, Delray Beach , Jupiter and Riviera Beach. The site also matches people with captains-for-hire if the renter prefers to have someone with more experience aboard. Andrew Sturner, a lifelong boater and the site's chairman, said the concept can help bridge two generations of consumers: baby boomers who own boats and 20-somethings who haven't been introduced to the nautical lifestyle. "The opportunity to marry the baby boomers with the millennials that are either unwilling or unable to afford the boating lifestyle, we saw a massive opportunity," said Sturner, a Hallandale Beach resident and marina owner.

Pier-to-peer boating sharing makes a splash |  Video

Summer at the beach in Fort Lauderdale
"I am a captain and I like to see people on the water and Cruzin gives people a chance to get on the water,'' said Tom Dwyer, 73, a Lantana resident who lists his two kayaks and his 20-foot and 30-foot Albury boats on Cruzin.com, which launched last year in Dania Beach . His smaller boat, called the "Risky Business," rents for $200 a day. He said it's a way to keep his boats running when he's away. Jaclyn Baumgarten, a co-founder and chief executive of Cruzin, said that "with peer to peer rental, it's a way to take that natural community that exists offline among boaters and bring it online. It's about that social experience. I think boaters are naturally social people who love spending time with friends and family. ''
The San Francisco entrepreneur, who lived in Hollywood , Fla., to launch the platform, got the idea for the company after seeing her two brothers wrestle with the possibility of having to sell their boats because of the high maintenance costs associated with them. "I knew about Airbnb and car-sharing models,'' recalled Baumgarten, who thought the sharing economy could "create a safe experience for the renter and the boater owner. "
Baumgarten also wanted to make boating more accessible for everyday folks. She decided to launch the company in South Florida to see how the concept would work in a region known for boating. "We knew that if we could build a program that would work for Florida, that it would work anywhere,'' she said. The company has since expanded nationally. So how does it work? Boat owners log onto Cruzin for free and create a profile with photos of their boat, size and rental fee. Renters use the site to browse for boat style (from kayaks to yachts) and price. An online map features the image of a small sailboat that marks where there is a boat available. On a recent weekday, there was an 18-foot Tahoe Q3 in Boynton Beach that rented for $150 a day, while over in Sunrise, there was a Stingray available for $200 a day. "These boats are privately owned, well-loved and well-appointed,'' added Baumgarten. "They are much nicer than what one would find in a typical rental fleet. "
The company pre-qualifies renters using Experian and fraud-prevention checks. The customer also has to have at least two years boating experience, which they explain in the screening process, or they can bring a licensed captain. The boat owners are also protected by $2 million in hull insurance and $1 million in liability insurance and towing service. Cruzin gets a 40 percent cut and covers the insurance. "It's safe, easy and fun, just the way boating was meant to be,'' added Baumgarten. Other sites, including Boatbound.com and fun2boat.com, are taking a similar approach in matching people with vessels in South Florida. Aventura-based BoatSetter.com launched last February and rents boats in the 28- to 60-foot range regardless of one's experience. Recently, an eight-passenger, 28-foot boat in Boynton Beach was going for $126 an hour. The website lists designated marinas and areas to rent from, including Fort Lauderdale , Pompano Beach , Delray Beach , Jupiter and Riviera Beach. The site also matches people with captains-for-hire if the renter prefers to have someone with more experience aboard. Andrew Sturner, a lifelong boater and the site's chairman, said the concept can help bridge two generations of consumers: baby boomers who own boats and 20-somethings who haven't been introduced to the nautical lifestyle. "The opportunity to marry the baby boomers with the millennials that are either unwilling or unable to afford the boating lifestyle, we saw a massive opportunity," said Sturner, a Hallandale Beach resident and marina owner.

Boat-sharing rental sites make a splash in South Florida

MENLO PARK, CA--(Marketwired - Jul 7, 2014) - Women's Startup Lab , a new accelerator model for women tech founders, today announced that Cognea and Swing by Swing , two companies founded by Women Startup Lab Founder's Circle accelerator members, have found successful exits with Cognea being acquired by IBM and Swing by Swing acquired by Back9Networks . Both Cognea and Swing-by-Swing came to Women's Startup Lab to join and build a community of peer support, to grow their networks and prepare for the next stage of their business growth. Since its launch in January 2013, Women's Startup Lab has graduated more than 25 female tech founders from its Founder's Circle accelerator program. Applications are now open for the next accelerator session which begins in September 2014. Women's Startup Lab Founders Success:
Liesl Capper, the chief executive officer and founder of Cognea, sold her company to IBM Watson ( according to the IBM blog ) in May 2014. Monique Giggy, president of Swing by Swing, sold her company to Back9Networks. Jaclyn Baumgarten, founder and chief executive officer of Cruzin, secured a seed round of funding for her startup, America's first fully-insured boater-to-boater™ rental and charter marketplace. According to a report by Dow Jones which reviewed 15 years of venture backed companies, only 3 percent of tech startups are founded by women. Women's Startup Lab is looking to prepare the next generation of female high-tech founders to yield revenue growth and usher in top-tier networks. "There's an unconscious bias that women in STEM are trying to overcome and Women's Startup Lab better prepares female entrepreneurs for business success. We're here to change the stereotype of who is considered a Silicon Valley success," said Ari Horie, founder and chief executive officer of Women's Startup Lab. "Women's Startup Lab provided great support and a group of peers I could spend time with. Running a startup is difficult and exciting, and women also have a particular set of challenges and opportunities. It was great being with other women on the same journey," said Liesl Capper, chief executive offer of Cognea. According to the IBM blog last month, IBM Watson acquired Co-Founder and Chief Executive Officer Liesl Capper's Cognea, the startup which offers virtual assistants that relate to people using a wide variety of personalities -- from suit-and-tie formal to kid-next-door friendly brings new types of interaction that is far beyond today's "talking smartphones. " IBM Watson, the company's strategic initiative, will integrate Cognea capability into the Watson platform and make this advanced conversational service available to others. IBM has a $100M fund to help startup's develop solutions for Watson. Back9Networks acquired Swing by Swing , the free Golf GPS & Scorecard App used by more than three million golfers in 130 countries to master the world's golf courses. Back9Networks has an aggressive strategy to double the existing Swing by Swing user base. The acquisition gives the upstart golf lifestyle and entertainment network the top-ranked free golf GPS app on both iOS and Android mobile platforms. For more information about Women's Startup Lab and its Founder's Circle accelerator program, visit http://womenstartuplab.com . About Women's Startup Lab: Women's Startup Lab is a new accelerator model for women tech founders, empowering female founders to successfully navigate today's entrepreneurial reality, accelerating their impact and value creation while positioning them to inspire the next generation of technology innovators. About Cognea: Cognea created virtual assistants that can relate to people using a wide variety of personalities -- from suit-and-tie formal to kid-next-door friendly brings new types of interaction that is far beyond today's "talking smartphones. " IBM Watson will integrate Cognea capability into the Watson platform and make this advanced conversational service available to others. About Swing by Swing: Swing by Swing's free Golf GPS & Scorecard app is used by more than three million golfers in 130 countries to master the world's golf courses, get distance information, play games, stay connected with golfing buddies, and maintain personal stats. Learn more and download the free app at www.swingbyswing.com . Contact Information

Women’s Startup Lab Accelerator Participants Cognea and Swing by Swing See Acquisition Success

Boatsetter

DaVita

IBM Research

Companies that sell goods online (B2C), or enable the selling of goods online via tech solutions (B2B). 

E-Commerce

Merger

Cruzin is a community marketplace for boating enthusiasts who want to list, discover and rent recreational boats. Whether sport-fishing for a day or island-hopping for a week, Cruzin connects thousands of people to unique boating experiences, at any price. Cruzin's Boater-to-Boater rentals, and growing community of professionally captained and crewed vessels, make days on the water safe, affordable and fun. And with its best of class insurance and complete on-water services provided by BoatUS, Cruzin is the easiest and safest way for boat owners earn income from their boats.

Date	Round	Amount	Investors	Valuation Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.	Revenue	Sources
9/15/2015	Merger		Boatsetter	$XXM	0 FY undefined	1
5/26/2015	Convertible Note	$XXM	Subscribe to see more	$XXM	0 FY undefined	10

Date	9/15/2015	5/26/2015
Round	Merger	Convertible Note
Amount		$XXM
Investors	Boatsetter	Subscribe to see more
Valuation	$XXM	$XXM
Revenue	0 FY undefined	0 FY undefined
Sources	1	10

First funding	9/15/2015
Last Funding	9/15/2015
Investor	Boatsetter
Rounds	1 Merger
Board Seats
Type	Corporation
Location	Florida

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