Laundry technology company Washlava has secured $9 million in its latest funding round to fuel growth, and with that growth comes the stepping down of CEO Todd Belveal.
"I'm always aware that there is a build phase, a launch phase and a growth phase, and I think it's pretty rare you find a company where the founder sees it all the way through," said Belveal, who founded the company in 2015. "I've focused on creating businesses, not necessarily scaling them, so thought it would be best to have a fresh face that's focused on building a growth company."
The company has smartphone-exclusive laundromats in Tampa and six other locations across the U.S., and its technology is used in dorms, multifamily housing units and Marriott hotels.
Belveal plans to take over the Washlava Tampa location and see the potential of scaling the laundromat side of things.
"I'm a guinea pig for a store business model and to see what makes sense," he said. "We get a lot of franchise inquiries, so this is a way I can help. But it's at Washlava's discretion. If the company decided they wanted to build corporate units and not franchises, that would be up to them."
Tommy Hart, a former manager at PwC, will step in as CEO. He most recently served as president of Jacksonville-based Offload Business Solutions. Hart will use the new funding for debt, hardware and software development. The company received more than $5 million in September 2019, preceded by a Series A-1 equity financing round led by LG Electronics in July 2019. It had raised a $1 million Series A in 2016.
The latest cash infusion is a mix of recapitalization and equity financing, with participation from the David A. Straz Jr. Foundation and Jacksonville-based Monterey Private Capital. Both have previously invested in Washlava.
"With them, we can get it to something that can look to be acquired," Belveal said, adding the company is in its seventh year. Most startups typically get acquired around the seven- to 10-year mark. "That happens when you get to a certain point in a company’s maturation, and I think Washlava is there. It has no problem raising capital, people see the need for it, and I've done my part."
But Belveal said beyond following a traditional acquisition timeline, there are no solid goals in place to sell.
"You build companies to become big operating companies, and when someone comes in and makes an offer too attractive to continue that, that's when you take it," he said. "Is an exit expected, with a good return? Yes. How that happens is to be determined. I don't think anyone has a mindset or strategy around it in that regard."
