Camper vans aren’t just for camping. They can also serve as alternative shelter. Most vendors sell them for a premium, but Boho Camper Vans is different. Founders Brett Ellenson and David Sodemann took their business to Shark Tank and landed a deal with Barbara Corcoran. As of 2024, Boho Camper Vans is valued at $4 million.
Founder
Brett Ellenson and David Soderman are old friends from Phoenix. David has a degree in business administration from the University of Wisconsin-La Crosse. Brett did not go to college, but worked as an apprentice to a craftsman.
David also studied Landscape Architecture with a minor in Marketing at Arizona State University. Earlier in his career, he served as a manager for companies such as ALL IN Media House, Kindred Cannabis, and Giving Tree Dispensary.
Meanwhile, Ellenson worked as a welder and machinist for Rolling Thunder LLC. After seven years with the company, he became regional director for Desert EDM.
Building a Boho Camper
After renting a camper in Maui, Hawaii, David realized he could do the same thing back home, so he returned to Phoenix and began working with Brett to build mobile homes.
Two months later, the van was equipped with running water, a storage system, and other necessities. When the group wasn’t using it, they rented it out. Before long, the van was being rented out so often that the group had no use for it themselves.
The two officially launched the business in 2018 by converting used vans. They successfully sold 12 vans and kept 5 for rental. In 2019, before appearing on the show “Shark Tank”, the company’s sales were $493,000.
Shark Tank Appearance
In 2020, Brett Ellenson and David Sodemann appeared on Season 11 of Shark Tank and asked for $300,000 in exchange for a 10% stake. Considering the company’s already good sales, this was a reasonable valuation.
All investors were surprised by the startup’s performance. The shark fight was already brewing, but it got more intense when the entrepreneurs mentioned their projected sales in the next few years.
The four Sharks launched a bidding war, but some were too greedy and wanted too much equity. Real estate mogul Barbara Corcoran accepted the founders’ initial offer, even though half of the $300,000 was a line of credit. Kevin O’Leary tried to fight back, but they chose Barbara.
After Shark Tank
The deal with Barbara Corcoran is done, and Boho Camper Vans is considered one of the most memorable campaigns on Shark Tank. Although the rental business has struggled during the pandemic, they have seen a significant increase in orders and have expanded to San Diego.
Eight months after the Shark Tank episode, they had $1.4 million in sales. Customers can buy or lease vehicles on the Boho.Life website. Leases start at $200 per night, but buying a used van costs about $80,000 to $120,000. Due to the current economic situation, the price of used vans has more than doubled since 2018.
Boho Camper Vans is still doing well, with mostly five-star reviews on Facebook and Google. In 2021, they had annual revenue of $2 million, and are on track to exceed that figure in 2022. The camper van startup is currently valued at $4 million and currently has 25 employees.
The main challenge ahead will be sourcing cheap second-hand trucks. It is difficult for this type of business to scale up without running into quality control issues.
Categories: Shark Tank
Source: dut.edu.vn
