physical space, photo equipment, musical equipment, and hardware for business presentations. SnapGoods tacks on a seven to 10 percent transaction fee based on the cost of the rental. There is currently a $5,000 limit on deposit value, unless the borrower has verified independent insurance.
SnapGoods is currently completing its first round of angel investing, which will be under $1 million, Williams says. The lead investor is Peter Shankman, an entrepreneur and author best known for launching the site Help A Reporter Out, which connects journalists with sources.
Williams says SnapGoods’ user base has tripled since the March launch, and he estimates that 10 to 20 percent of users are “engaging the system in meaningful ways.”
Williams and his co-founder, John Goodwin, work out of a tiny, 64-square foot space in Dumbo, Brooklyn, in the neighborhood that has taken on the nickname “Digital Dumbo.” The two, who met through an L.A.-based venture capitalist, complement each other’s skills. Williams owned his own tutoring and test prep company before joining Scholastic and later doing business strategy, innovation and development as a consultant. Goodwin worked as a computer scientist for Oracle and two startups, Newsroo and Gypsii. SnapGoods occupies a space with other “collaborative consumption” companies like airbnb.com, neighborrow.com (in beta), and neighborgoods.net.
Lately, SnapGoods has found a sweet spot in the creative sector, where users are actively borrowing cameras, musical instruments, and other equipment. Williams notes that $10,000 worth of photo equipment is added to the site every week.
The company also enjoyed a spike in Kansas City after an article led people to SnapGoods to exchange home-gardening tools. “We’ve built a social network for needs,” Williams says. “We connect people around shared interests, relevance, and engagement with one another.”
Williams is working on the mobile version of SnapGoods. And the company is improving the way the technology processes data. Says Williams: “We’re pioneering the use of network data to connect you more efficiently and effectively to the people within your networks who can meet your needs.”
