A campervan is more than just camping. They can also be replacement homes. Most providers sell them at a premium price, but Boho Camper Vans are different. Founders Brett Ellenson and David Sodemann ink $4 million deal with Barbara Corcoran and Boho
Founder
Brett Ellenson and David Sodemann are longtime Phoenix associates. David earned a degree in Business Administration from the University of Wisconsin-La Crosse. Instead of going to college, Brett worked as an apprentice tradesman.
David also studied Landscape Architecture at Arizona State University with a minor in Marketing. Early in his career, he worked as a manager for companies like All In Media House, Kindred Cannabis, and gave away trees.
Meanwhile, Ellenson started out as a welder and machinist for Rolling Thunder LLC. After seven years with the company, he became regional director of Desert EDM.
Create a bohemian style
David realized he could do the same thing while renting a campervan in Maui, Hawaii. So he returned to Phoenix and started working with Brett to build a mobile home.
Two months later, the van was equipped with running water, a storage system and other necessities. When the guys aren't using it, they can rent it out. Before long it was rented so often that they couldn't use it themselves.
The pair officially launched the business in 2018 by converting used car vans. They managed to sell 12 and keep five for rent. In 2019, the company had sales of $493,000 before launching Shark Tank.
Shark tank appearance
In 2020, Brett Ellenson and David Sodemann appeared on Season 11 of Shark Tank, demanding $300,000 in exchange for 10% equity. This is a reasonable valuation given that the company already has decent sales.
All investors were surprised by the startup's performance. A battle of the sharks is already brewing, but things get even more intense when the entrepreneur mentions forecast sales for the next few years.
Four sharks participated in a bidding war, but some sharks were greedy and wanted too much fairness. Real estate mogul Barbara Corcoran was met with the founder's initial offer, even though half of the $300,000 was a line of credit. Kevin O'Leary tried to fight back but they went with Barbara.
after shark tank
Dealing with Barbara Corcoran, Boho will be remembered as one of the more memorable episodes of Shark Tank. Although the rental business has struggled during the pandemic, they've received great orders and expanded into San Diego.
Eight months after Shark Tank, they had sales of $1.4 million. Customers can buy or rent vehicles on the Boho.Life website. Rental prices are $200 per night, but buying a used car costs about $80,000 to $120,000. Since 2018, the cost of used vans has doubled due to the current economic climate.
Boho Camper Vans are still doing well and have five-star reviews primarily on Facebook and Google. In 2021, they have annual revenue of $2 million and are on track to beat that number in 2022. The campervan startup is currently valued at $4 million and now has 25 employees.
The main challenge ahead is sourcing cheap used vans. These types of businesses are difficult to scale without running into quality control issues.
Categories: Shark Tank
Source: svlsf.edu.vn