NEWS: Construction Equipment Rental Startup Plans to Go Public This Year. BigRentz Seeking $2 Million via Reg D….
A company in the construction equipment rental industry is preparing to go public later this year.
BigRentz, with HQ in Irvine, serves those looking to rent construction equipment, with the goal of simplifying the procurement and logistics challenges.
The company is seeking to raise $2 million via Regulation D.
Reg D enables businesses to raise capital from accredited investors without registering with the SEC.
BigRentz was co-founded by Dallas Imbimbo, Nick Kovacevich and Stephen Jesson. Imbimbo and Kovacevich are now board members.
Scott Cannon is the CEO and chairman.
Imbimbo previously founded PackMyDorm, a moving and storage company that served students at UC Davis (his alma mater), UC Berkeley, UC Santa Cruz and Stanford. He sold it in 2010 for an undisclosed amount when he relocated to SoCal.
Last year, Imbimbo founded an investment firm, Alpha West Holdings. It invests in early-stage companies, and also provides support and infrastructure to help their management teams grow.
Imbimbo and Kovacevich together founded 3 Kings Ventures in 2011 to invest in and redevelop distressed residential real estate properties.
And, in 2014, they co-founded KushCO Holdings, formerly Kush Bottles. This company sells packaging products to customers in the regulated medical and recreational cannabis industries.
KushCO specializes in the wholesale distribution and customized branding services.
Cannon “substantially” grew an international same-day logistics company, MNX. He sold the company to a large private equity firm in 2012.
“Each business venture has been in different industries that present unique challenges and opportunities for success,” Cannon told OC Startups Now. “You take a new learning from each that can be applied to some degree in the next venture. Having a mix of experiences is beneficial because you gain confidence in your ability to select the right management team and execute growth-focused business plans.
The co-founders said that of all their previous experiences, BigRentz is the most notable because of “the impact” it’s made in the construction equipment rental industry.
BigRentz currently has more than 2,000 rental partners.
“It is leading the industry by using innovative technology to streamline the rental process for both the customer and the supplier,” Cannon said.
The co-founders said they’ve bootstrapped the company to date, declining to disclose by how much.
They also declined to disclose the company’s current valuation.
Big Rentz is in revenue and expects about 40,000 rentals this year, Cannon said.
BigRentz has negotiated set rates with its rental suppliers, which the co-founders say makes it possible to offer “competitive market rates.”
“Our suppliers, in turn, see BigRentz as a marketing and sales channel to drive revenue,” Cannon said.
And the startup handles the entire rental process, so it’s the single point of contact for customers.
The company’s most recent milestone was developing a new bulk order system that it touts as making it easier for national construction and maintenance companies to rent construction equipment.
“Our primary goal is to continuously improve the customer experience,” Cannon said.
He explained that previously, construction companies would come to BigRentz with lists of future projects, but with similar rental needs. That required the startup’s employees to manually input those bulk orders.
Those orders typically consisted of 50 to 250 customer locations that required the same heavy equipment at each site, such as forklifts and scissor lifts, with only the date and location changing.
The manual process was “error prone,” resulting in up to a 4% error rate among orders, which could take hours to complete.
“Now with the new bulk order system, bulk orders are processed all at once, with hundreds accurately inputted and confirmed in as little as 10 minutes,” Cannon said.
Customers include companies supporting events at sports arenas, as well as national retailers that consistently need heavy equipment for events, promotions or maintenance projects.
The co-founders said that OC is “a great region for startups for a number of reasons.”
“There is access to bright college graduates from many local universities, there is already a strong tech presence with experienced talent, and the location is great for recruiting talent from outside the region,” Cannon said. “And, because Orange County has a strong construction market, we can look at trends happening in our local market as a microcosm for the rest of country.”