If you're trying to start a high-tech boat rental company, you couldn't ask for a better testing ground than Minnesota's 10,000 lakes.
At least that's the belief of Ross Larson and Jake McHenry, two Twin Cities entrepreneurs who this summer launched Float, a peer-to-peer boat rental platform.
The idea behind Float is similar to Airbnb. Boat owners can list their pontoons, speed boats, fishing boats or other vehicles on the site, and Float rents them out. On average, boats cost about $100 an hour.
Float's founders hope that by offering a simple boat rental option, they will be able to ease boat owners' financial burdens and help those without boat access get on the lake.
"Some of my favorite memories of Minnesota were being on a lake on a sunny day," Larson said. "But not everyone has access to a boat or the opportunity to use one. That's what we want to help them achieve."
One out of every six Minnesotans owns a boat, according to the Department of Natural Resources. Minnesota is No. 2 in the country overall for boat ownership, lagging behind Florida, but ahead of Michigan, California and Wisconsin.
Larson and McHenry have been friends since they were in first grade, the two said, and always wanted to create a company together.
“It was never a matter of if we were going to start a business together, but when,” McHenry said.
McHenry approached Larson with the idea for Float in 2017, and by February 2018, both quit their jobs to focus on the venture full time.
Larson and McHenry both agreed that the biggest hurdle to getting the business off the ground was securing insurance for their boating business. After that was taken care of, Float made its official debut in July 2018, offering boat rentals on seven lakes in the Greater Twin Cities area. It brokered about 25 deals before the end of the season, the majority of which were on Lake Minnetonka.
Float is staying busy during the winter. The company will be making an appearance at the Minnesota Boat Show in late January, where they hope to recruit more boat owners to their platform and connect with boat dealers and local marinas.
Larson and McHenry also hope to close on a $250,000 seed round before the start of summer, when business will pick back up again. In the coming year, they plan to keep growing Float just in Minnesota, but hope to eventually expand into Wisconsin.
"People love to show off Minnesota's lakes,” Larson said. “They're proud of where they live and they want to share it with others. We want the same thing.”
