Valet self-storage operator Clutter has raised $20 million in a Series B round of investment to help fund expansion to new markets. The round was provided by Sequoia Capital, a Menlo Park, Calif., venture-capital firm, which also led a $9 million infusion for the company last October. Clutter previously announced its intent to add seven more metropolitan markets this year, including Boston and Houston.
"Clutter's strong use of technology enables them to provide a step-function better storage experience at price parity with the incumbents in this $30 billion market," Omar Hamoui, a partner at Sequoia, said in a press release. "[The Clutter team has] surpassed all our expectations, and we're excited to double down on our support for their efforts to build a transformative company."
Clutter has grown nearly five times since Sequoia’s investment six months ago, now employing a staff of 175 across its service markets, the release stated. Hamoui believes the valet-storage operator’s business model and customer-payment structure bode well for the long term. “This is more of a high-value subscription business than a one-off purchase," he told the "Los Angeles Times.” "The revenue is fairly regular and recurring."
Clutter has now raised $32.3 million in capital investment. "To have had Sequoia, an investor in Google, Apple, YouTube and other landmark companies, lead both of our rounds is a true testament to their belief in not only the team that we've created, but the market opportunity ahead of us," Brian Thomas, co-founder and CEO of Clutter, said in the release. "Sequoia's world-class guidance and resources will allow us to continue our vision of making the world more convenient."
The latest investment came from Sequoia’s Growth Fund as opposed to its Venture Fund, which provided the first infusion. The last company to receive investments from both funds was WhatsApp, a cross-platform mobile-messaging app, which was acquired in 2014 by Facebook for about $22 billion, the source reported.
Similar to other valet-style storage operators, Clutter offers by-the-bin storage targeted at urban residents who don’t have adequate home storage. The Los Angeles-based company uses an online platform that allows customers to schedule free item pickup, maintain an image catalog of stored bins and bulky items, and schedule delivery of items to their home. The company launched in 2013 and offers service in Northern and Southern California, New Jersey and New York.
