Washbnb is now a
Techstars company and while that's a big deal for the Milwaukee-based startup, their experience will have broader implications for Milwaukee’s startup ecosystem.
The linen and laundry service for short-term rental owners is the first Milwaukee-area startup to be selected for
Techstars Atlanta, one of the largest seed accelerators for early-stage companies in the world.
Washbnb stands to gain from a $120,000 investment upon completing the program, but the benefits go beyond what could become the startup’s largest investment, said Daniel Cruz, washbnb co-founder and CEO.
Becoming a Techstars company not only validates wasbnb's business model, but it also provides Cruz and his team access to Techstars’ global network of startup companies and mentors, he said.
“…there’s this common bond and shared camaraderie,” Cruz said. “Techstars is working really hard to form those bonds because as the network grows, you see the benefits of having those connections.”
When Cruz and his team return to Milwaukee following the three-month program, he plans to share his experience and bridge those connections and relationships with the local startup ecosystem.
“I think when we get back to Milwaukee, a huge part of what we bring to the table is ‘Hey, we’ve done the Techstars program and here’s what it meant to us,’” Cruz said. “To keep making those connections, to send founders who are deserving to people like David Payne and other Techstars managing directors so they can be considered for programs.”
As a Techstars managing director, Payne spends a lot of time in newer tech hub cities like New Orleans, Birmingham and Chattanooga. When a local startup is tapped for Techstars, there's added momentum, especially when paired with other initiatives that aim to further a city's startup ecosystem, Payne said.
"Once we have a team in a particular geography, they can help the larger community make connections across the Techstars network," Payne said.
As Cruz describes it, there are similarities between how Techstars operates and the ethos behind the recently formed
Milwaukee Founder Collective, a new group of startup founders, including Cruz, that aims to give startup founders a sense of ownership over the city’s startup ecosystem. Both organizations share a “founder first” mindset, which focuses on the people behind startups more so than their companies, Cruz said.
“We think that’s kind of the superpower of Milwaukee,” Cruz said. “That aligns really well with what Techstars believes and thinks. They’re ‘founder first,’ giving back is a big mentality and they really invest in people, their teams and not so much in the ideas."
Washbnb has gained a lot of traction since the coronavirus pandemic brought the travel and hospitality industry to a standstill. The startup was
forced to pivot during the pandemic but has since returned to its core offering: providing linen and laundry services to hotels, property managers and Airbnb rentals.
The startup recently captured Milwaukee-based
Frontdesk as a customer as well as
The Double Dutch Hotel located in downtown Milwaukee.
Washbnb is also crowdfunding through a WeFunder campaign, which has grown to more than $134,000 since it was launched in May. The return of travel is stoking optimism for Cruz, who says washbnb's unit economics have accelerated since travel came back online.
The startup now has 70 units under contract and generated $24,000 in revenue in its first year, according to the
campaign. There are about 33 million units the startup can target locally, giving washbnb a total addressable market of about $69 billion.
Washbnb is now projecting revenues of $30 million by 2024 and achieving "unicorn status" by 2026 with revenues exceeding $100 million, according to the campaign.
“I think while we were cautiously optimistic that this business would work even through a pandemic, what we’re finding is that we underestimated how much revenue we thought we could generate," Cruz said.
