stuf Raises $1.8M to Revolutionize Self-Storage

Stuf, an innovative new company focused on converting underutilized areas like basements into convenient self-storage solutions, has announced the successful completion of a $1.8 million seed funding round.

Katharine Lau, the company’s co-founder and Chief Executive Officer, formerly oversaw the real estate operations at co-working provider Industrious. She explained that her interest in the self-storage sector emerged during the initial phase of the pandemic, sparked by a spring cleaning project that required her to utilize a storage facility for personal items.

Based in New York City, Lau observed that many existing self-storage facilities are situated in less accessible areas, such as along the West Side Highway or the East River, often distant from residential neighborhoods. She also noted that these facilities frequently present an impersonal atmosphere, characterized by harsh fluorescent lighting.

“They often felt reminiscent of morgues,” she remarked. “There’s a lack of transparency; you’re unsure of what lies behind those doors.”

While these factors may not significantly impact individuals who store belongings for extended periods without frequent access, Lau believes they represent a considerable drawback for today’s consumer, especially millennial women residing in urban centers.

“Millennials generally lead more mobile lives and require more frequent access to their stored possessions,” she stated. “The storage unit effectively functions as an extension of their living space, serving a purpose far beyond simply storing items. It integrates into their daily lives.”

Consequently, Stuf actively seeks out “underappreciated spaces that aren’t currently generating revenue,” establishing revenue-sharing agreements with property owners and then transforming these spaces. The company can transition from initial site evaluation to operational storage within a timeframe of four to six weeks, according to Lau.

This approach results in self-storage facilities located in closer proximity to customers’ homes. Furthermore, Lau emphasized the company’s dedication to interior design, striving to create a “welcoming and comfortable” environment that customers appreciate visiting.

Several other startups are attempting to modernize self-storage through on-demand services, including pick-up and delivery of belongings. Lau acknowledged the convenience of this model but suggested that it presents “considerable challenges” from a financial perspective.

Currently, Stuf’s pricing structure is “comparable” to that of traditional self-storage options. Lau also indicated that, due to the company’s business model – avoiding property purchases and long-term leases – potential cost savings will be passed on to customers as the company expands. (A review of listings for Stuf’s Brooklyn location revealed pricing ranging from $172.51 monthly for a 10×6 foot unit to $43 for a 5×3 foot unit.)

The company presently operates three locations in San Francisco and New York City, and has experienced strong customer demand, achieving 90% capacity in its initial locations within three months of opening.

The seed funding round was spearheaded by Wilshire Lane Partners and Harlem Capital, enabling Stuf to pursue further expansion and establish new locations across the country. Lau’s objective is to launch over 100,000 square feet of storage space throughout 2021.

“Stuf is genuinely remarkable because, beyond the business opportunity, it represents a collaboration between two venture capital firms led by Black investors to support a company founded and managed by a woman,” stated Henri Pierre-Jacques, Managing Partner at Harlem Capital, in a press release. “Katharine’s industry knowledge, leadership qualities, and vision were particularly impressive. We are thrilled to partner with her as she works to transform the storage industry.”