Nickson: Furniture-as-a-Service Startup Gets Backed by Obama Advisor

The Appeal of Model Apartments and a New Startup Solution

Have you ever visited an apartment showing and been particularly captivated by the decorated model unit? This experience is quite common. Cameron Johnson, a Harvard Business School graduate and former real estate professional with Greystar, identified a trend: prospective renters frequently expressed a desire to simply rent the model apartment as-is.

Introducing Nickson: Furniture as a Service

This observation sparked an idea. Johnson recognized a demand for readily furnished apartments and a universal dislike of the moving process. Consequently, in 2017, he founded Nickson, a Dallas-based startup specializing in on-demand apartment furnishing.

Johnson envisioned a service that would allow renters to easily acquire a fully furnished space, much like receiving a cable modem. He questioned, “Why can’t this convenience be extended to all household necessities?”

Beyond Furniture: A Complete Home Setup

Nickson’s offerings extend beyond standard furniture items like beds and sofas. The company provides a comprehensive package including essential items such as extension cords, cookware, silverware, and even curtain rods. Through partnerships with various retailers, Nickson promises to make new living spaces move-in ready in as little as three hours.

How Nickson Works: Personalization and Convenience

Users begin by completing a style quiz and providing details about their apartment’s layout. Nickson’s designers then create an initial layout based on the apartment’s dimensions, functional requirements – like a home office – and the user’s lifestyle.

Following layout approval, Nickson develops a customized design encompassing all furnishings and home goods. Upon signup, a one-time installation fee is charged, followed by a monthly subscription, ranging from $199 for a studio to $500 for a three-bedroom apartment.

Additional Services and Expansion Plans

Nickson also provides optional concierge services, including a household supply starter kit and maid service, supplementing the core monthly subscription. Currently operating in the Dallas market, the company intends to expand to other cities within the next year, with beta tests already underway in Austin and Houston.

Recent Funding and Investor Confidence

To facilitate this expansion, Nickson recently secured $12 million in Series A funding. The round was led by a fund managed by Pendulum Opportunities LLC, a subsidiary of Pendulum Holdings LLC, with participation from Motley Fool Ventures, Revolution’s Rise of the Rest, and Backstage Capital.

Addressing Supply Chain Challenges

The COVID-19 pandemic caused significant disruptions to global supply chains, resulting in delivery delays for many consumers. Nickson proactively addressed this issue by building a local inventory of purchased items. This strategy enhances the company’s appeal to renters seeking to avoid delays and the hassle of sourcing furniture and essentials.

In fact, Nickson experienced a remarkable 700% growth in its user base in 2020 compared to the previous year, demonstrating the effectiveness of its approach.

Investor Perspectives on Nickson’s Potential

Robbie Robinson, co-founder and CEO of Pendulum, highlighted Johnson’s “vision, the growing trend towards renting and subscription services, and the company’s innovative business model” as key factors driving their investment. Robinson, who previously served as President Barack Obama’s financial advisor, founded Pendulum to invest $250 million in startups led by people of color.

Kabir Ahmed, Vice President at Pendulum, believes Nickson’s comprehensive model surpasses the limitations of renting individual furniture pieces, offering a complete and streamlined solution.

“This effortless experience is a significant differentiator and provides a compelling benefit to consumers,” Ahmed stated.

Competition in the Furniture Rental Market

Nickson is not alone in attempting to modernize the furniture rental industry. Other companies offering similar services include Oliver Space, Fernish, and The Landing.

Nickson’s Competitive Advantage

However, Nickson asserts its distinction lies in its all-inclusive approach, extending beyond furniture to encompass items like artwork and even toilet brushes. Furthermore, the company claims to be able to fully furnish and prepare a space before the renter even arrives.

“No other competitor in this market provides this level of service, attention to detail, or speed of execution,” Johnson emphasizes. “Renters can arrive at their new home with just a suitcase and toothbrush, and it will be completely ready for them to live in.”