Billing itself as “the first automated linen closet for Airbnb hosts” Milwaukee-based startup washbnb wrapped up the competitive three-month Techstars Atlanta accelerator program with a demo day presentation Monday evening.
The company’s leadership team will remain in Atlanta for at least a few months to take advantage of office space provided by Techstars, washbnb co-founder and CEO Daniel Cruz told the Milwaukee Business Journal. The startup’s next priorities will be fundraising, building out its team, securing more of its hotel-quality linens and expanding to new markets.
Washbnb launched in Milwaukee last year with customers that include short-term apartment rental startup Frontdesk Inc. and the Dubbel Dutch Hotel. It has identified Atlanta; New Orleans; Philadelphia; Columbus, Ohio; Orlando, Florida; and Charlotte, North Carolina, as priority markets for expansion based on interest from customers that collectively have more than 1,800 units in those locations, Cruz said.
The amount of money washbnb raises in its next fundraising round will dictate how many of those markets it will immediately pursue, Cruz said. Companies that participate in a Techstars accelerator program raise an average of $1 million in their first round after the program, according to Techstars.
As part of the accelerator program, washbnb received a $120,000 investment from Techstars. It also has raised nearly $170,000 from the crowdfunding platform Wefunder.
Washbnb owns a fleet of linens, rents them to customers, outsources laundry to local facilities that specialize in hotel linens and delivers freshly washed sheets to its customers. Charging for each reservation it services, washbnb earns about $175 per month for each listing, Cruz said during his Techstars presentation. The company needs about 275 listings in each market — one or two anchor customers — to break even, he said.
To date, washbnb has brought in $45,000 in revenue from five pilot customers, Cruz said.