Newport boating tech startup gains third investment round of $2M

DOCKWA FOUNDER AND CEO MICHAEL MELILLO has just closed on a $2 million round of funding for his digital planning and docking platform for boaters. / COURTESY DOCKWA
DOCKWA FOUNDER AND CEO MICHAEL MELILLO has just closed on a $2 million round of funding for his digital planning and docking platform for boaters. / COURTESY DOCKWA

NEWPORT – Dockwa Inc., a Newport-based tech startup that helps boaters research, plan and book cruising trips, has raised $2 million in private capital in its most recent seed funding round.

Combined with two rounds last year, the newest series brings the company’s total invested capital to $3.5 million, allowing it to launch its first paid-subscription product and expand its footprint in the Mid-Atlantic and Caribbean regions.

Michael Melillo, Dockwa founder and CEO, says the startup plans to be cash-flow even by the middle of next year, which he says is atypical of tech startups.

“We took about a third of the capital put in front of us to make sure we’re cash-flow even,” he said. “We’re bucking the Silicon Valley trend that says you need a bunch of cash to make a business that’s profitable.”

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Since launching in May 2015, Dockwa has grown its network’s accounts to more than 400 marinas in 22 states and four countries. The Web- and app-based technology gives boaters and marinas a unified and real-time booking platform, which streamlines a process that’s traditionally been clunky and slow-paced. The company, which also has offices in Cambridge, Mass., has facilitated more than 12,000 reservations through its first year of operations.

The latest funding round was sourced through 70 percent of pre-existing investors, according to Melillo, which he says is a testament to the quality of his team. The company now comprises 15 full-time employees, and the latest injection of capital will allow Dockwa to expand its sales and marketing team to grow the company’s footprint. This summer, the company has expanded in the Midwest with the addition of 13 locations in Chicago Harbor.

“We have good density in New England,” he said. “Our next big focus is heavily down South.”

Dockwa recently launched its first paid-subscription product, Dockwa Connect, which is being offered in addition to its core product, which remains free. Dockwa Connect costs $299 per month and offers marinas analytics and consulting to maximize usage.

Melillo says the model is already working in Edgartown on Martha’s Vineyard, Mass., where Dockwa manages 100 percent of the town’s boating reservations, which have increased 45 percent in 2016 compared with the same period last year.

“There’s not a tremendous amount of overhead and the town makes more money,” he said. “Also, customers come in and dock for $40 a night, but spend another $200 to $300 a night in the town, so the economic impact is significant.”

Beyond the new product, Dockwa has a transactional business model, charging marinas 3.5 percent for reservations, which Melillo says the company takes “a small percentage of,” but mostly puts it toward credit card fees.

“We feel as if we have yet to scratch the surface on what we are capable of delivering,” he said. “While the early traction is exciting, over the next 12 months, boaters and marinas will be exposed to features that have previously not existed in the space before,” Melillo said.

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