Overview:
Fat Llama (fatllama.com) believes in buying less and experiencing more. A Y-combinator alumnus, they have become the world’s largest peer-to-peer rental platform since they launched in 2017. Fat Llama users save money by renting the items they only need on occasion (from cameras to power tools to camping gear), and make money by lending out their own items under the protection of the Fat Llama Lender Guarantee. With on-demand access to these otherwise expensive or niche items, Fat Llama user are doing, creating, and achieving incredible things every day. Even better than that? This circular model of renting and sharing maximizes the use of each individual item and reduces waste that comes from buying items that we don’t really need to own.
Investment Rationale:
When we invested, rental behavior had proliferated across many areas of consumer demand that were previously geared toward consumer ownership. These areas included accommodations (AirBNB), fashion and apparel (Rent the Runway), education (Chegg), entertainment (Netflix), and several others. This behavior is driven by the desire of consumers to only pay for the consumption that they desire. We believed that it would be logical for there to be a category king of P2P goods rental and thought that Fat Llama could be that company.