Fat Lama, an online marketplace where users can lend and borrowing anything, is announcing a $10m Series A funding round.
The round will be led by Blossom Capital, with Atomico and existing investor Y Combinator participating.
Unlike other sharing platforms, the company insures every rental for up to $30,000, which allows users to rent out expensive items like high-end cameras and campervans.
London-based Fat Lama users are making and saving impressive sums of money. Some lenders are already earning up to $10,000 per month in rental income.
In total, those borrowing through the platform are saving an estimated $12 million per month in non-purchases.
The latest investment round will be used to grow the company’s user base in the US after a successful launch in New York, where over 6000 items have already been listed on the site.
The funds will also be used to scale up the company’s product, engineering and operations teams in London and hire city general managers across the US.
“As consumers, we’re becoming less and less interested in owning things,” says CEO Chaz Englander.
“At Fat Lama, we believe that one day, actually owning those things we only occasionally need will be as ridiculous as buying a house every time you want to go on holiday.
“People can enjoy using items without the financial burden or environmental implications of owning them.”
Ophelia Brown, founder of Blossom Capital, said: “Fat Lama is truly transforming the way that consumers think about ownership.
“It’s impressive how strong their brand is in the market – rarely do we see this at such an early stage in a company’s life.
“The platform works in both large cities and remote areas as it’s an easy way for anyone with items to rent to earn a substantial income.
“We’re excited to work with such a formidable team and help them expand on their mission.”
Atomico Partner Carolina Brochado said: “At Atomico, we love to get behind companies offering solutions to the world’s biggest problems and with Fat Lama, we have found a much-needed solution to break from the prevailing ‘take, make, use, throw’ cycle of consumerism, towards one that rewards repair and reuse.”
Existing investors in Fat Lama include Y Combinator, Greylock Partners, Gmail creator Paul Buchheit and Zynga co-founder Justin Waldron.