Amsterdam, May 31st 2022 - Circular sharing platform Peerby.com, the website that enables neighbors to borrow and lend household items, has raised 2.3 million euros from investors. The announcement of the investment follows a period of rapid growth and coincides with the tenth anniversary, hundreds of crowdfunders becoming co-owners and the first profitable month of the platform after launching a revamped model in 2019.
The financial success of the revamped platform is due to the introduction of a paid membership for borrowers. Peerby's revenue grew by 222% in 2021 and 200% in 2020. The rapid growth can be attributed to supporters inviting their neighbors to join Peerby's digital neighborhood sharing shed, which is now filled with over half a million shared products.
The recent investment round was led by Toronto-based tech and impact fund Loyal, with contributions from Dutch impact investor Shamrock Ventures and existing shareholders, including hundreds of crowdfunders. Peerby aims to use the investment to increase its impact. The first focus will be to grow in medium-sized Dutch cities. The platform strives to reach the same level of sharing as in home town Amsterdam, where 1 in 4 households is a member. Furthermore, Peerby is taking the renewed platform international, with Belgium already leading the way and rollouts in other countries planned for late 2022 and 2023.
Nine hundred crowdfunders, who provided the company with a loan five years ago, were given the opportunity to convert their loan into shares as a result of the investment. A vast majority opted for conversion and forty percent of them even decided to buy additional shares.
Investors believe in both the economic and sustainability potential of Peerby. Recent research by Milieu Centraal, a Dutch environmental research institute, concludes that consumers can reduce their climate impact by more than 25% by making circular choices, such as sharing and borrowing. Polls by Nielsen show more than 66% of consumers globally are willing to rent things from and to others. With recent inflation and signs of economic downturn, Peerby expects that the willingness to save and earn by sharing will only increase further.
“The support from members, crowdfunders and professional investors confirms that everyone is eager for an alternative to today's hyperconsumption. We’ve always had social and ecological impact and the challenge was to become financially sustainable. Now that we have achieved profitability, the time is ripe to make neighborhood sharing mainstream.”
"Peerby, besides being a great impact story, is a testament to the power of persistence. Others have struggled to implement this obvious concept, since it has challenging economics. Daan and his team have accumulated years of customer insights and iterated every aspect of their model to crack their industry's code. Loyal is delighted to support them in expanding the power of sharing."
“Peerby is the perfect proof that a company can combine impact at scale with a profitable business model. Shamrock Ventures is proud to support this startup in their international expansion.”
About Peerby (www.peerby.com)
Peerby.com enables neighbors to share all kinds of goods, such as tools, electronics, bicycles and garden, camping and party gear for free or for a fee. Peerby launched the world's first working goods sharing platform in 2012. The objective, to connect neighbors and reduce waste and emissions, generated lots of recognition, investments and awards. An expansion to 30 cities in Europe and the US followed. When the financial model proved untenable in 2017, the startup was forced to pivot in search of a new model. It launched a revamped platform in 2019.
About Loyal VC (www.loyal.vc)
Loyal VC is a Toronto-based tech and impact fund that invests in INSEAD and Founder Institute alumni worldwide. Loyal uses a unique and transparent investment process; It steps in early with small amounts to monitor performance. Periodically, the best-performing companies in the portfolio receive offers for additional investment.
About Shamrock Ventures (www.shamrockventures.nl)
Shamrock Ventures is a Dutch venture capital fund that focuses on early stage investments in mission-driven tech startups in the Netherlands. Shamrock Ventures started in 2021 under the direction of Tommy Hurley and was co-founded by a group of experienced entrepreneurs, who have made their mark with companies such as Elastic, New Motion and BUX.