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42Floors (YC W12) Raises $12.3M Led By NEA

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Re: 42Floors (YC W12) Raises $12.3M Led By NEA

#11

Post by josh2600 »

Look, 42Floors is going to succeed not because their problem domain is the most interesting, or because their code is the prettiest around. The reason 42Floors is going to be successful is because of Jason's hiring practices and the entrepreneurial spirit of the staff.

If you read the hiring alerts that hit HN, the 42Floors are very well written, inspiring and they give a strong feel of the company culture. I admire this business a lot and I can't wait to see what they accomplish.

Keep rocking in the free world, and congratulations on securing additional funding.

Re: 42Floors (YC W12) Raises $12.3M Led By NEA

#12

Post by BroNamath »

I can't believe this site is still around. Yes RE tech is broken, but their overly exuberant posts about the geek culture of the office and hiring practices aren't going to fix that. The fact is, RE brokers like to do deals with each other, landlords trust their brokers, RE deals are quirky. The office market has been on a rocketship ride for the past three years, probably exactly as long as 42floors has been around, and 2MM SF is not a lot. What happens when office leasing momentum stops?

Re: 42Floors (YC W12) Raises $12.3M Led By NEA

#13

Post by jaf12duke »

josh2600 wrote: post #11

Look, 42Floors is going to succeed not because their problem domain is the most interesting, or because their code is the prettiest around. The reason 42Floors is going to be successful is because of Jason's hiring practices and the entrepreneurial spirit of the staff. If you read the hiring alerts that hit HN, the 42Floors are very well written, inspiring and they give a strong feel of the company culture. I admire…

Thank man. It's really appreciated.

We try really hard to make this a wonderful place to work. Of course, all companies try to do that. Why wouldn't they? Our claim is that we try to be specifically good for founders. 7 out of 10 of us code and have started a different company before.

It takes some extra effort to attract and retain people that are talented and experienced enough to start their own company whenever they want.

We're not perfect. It's no Potemkin Village. But we try.

Re: 42Floors (YC W12) Raises $12.3M Led By NEA

#15

Post by jaf12duke »

BroNamath wrote: post #12

I can't believe this site is still around. Yes RE tech is broken, but their overly exuberant posts about the geek culture of the office and hiring practices aren't going to fix that. The fact is, RE brokers like to do deals with each other, landlords trust their brokers, RE deals are quirky. The office market has been on a rocketship ride for the past three years, probably exactly as long as 42floors has been around,…

Totally fair. I may disagree, but it's a fair assertion that the commercial real estate community won't want a tech company getting involved. It's what I heard from virtually everyone when I talked about starting this company. And for months, that was the response that I got.

And then something funny happened. We started helping tenants find spaces. Real tenants, spending real money. Landlords got paid and brokers took commissions. It's amazing how seeing the product work changes people's minds.

We're not all the way there yet, for sure. We've barely begun. But we have nearly every top landlord on board--representing hundreds of millions of square feet. We work with every top brokerage, sending them leads that they make money on. And most importantly, we continue to serve the tenant, doing everything possible to make this experience better for them.

But I don't need to try to convince anyone--just keep watching. We had absolutely nothing 12 months ago. Just watch to see what we accomplish in the next 12.

Re: 42Floors (YC W12) Raises $12.3M Led By NEA

#16

Post by jaf12duke »

martythemaniak wrote: post #5
dude_abides wrote: post #2

Since launching a year ago, 42Floors says that it has connected some 1,000 businesses with over 2 million square feet of office space Assuming very conservatively that an office with 20 employees requires 4400 sq ft, 2million/4400=454. Isn't that an extremely low number for one year of operations?

Not necessarily. With startups it's all about growth, and your calculation misses that completely. For example, your number implies they do a "sale" about once a day, however if they've seen good growth, they might have been doing one "sale" a week last year, and 30 "sales"/week today. Remember that in the early stages exponential growth looks worse than even linear growth. (example: http://www.wolframalpha.com/input…

All we care about is monthly growth. And it's consistent.

Re: 42Floors (YC W12) Raises $12.3M Led By NEA

#17

Post by jaf12duke »

earbitscom wrote: post #10
dude_abides wrote: post #2

Since launching a year ago, 42Floors says that it has connected some 1,000 businesses with over 2 million square feet of office space Assuming very conservatively that an office with 20 employees requires 4400 sq ft, 2million/4400=454. Isn't that an extremely low number for one year of operations?

This is a marketplace business. You can't expect explosive growth when dealing with a two-sided market. You have to grow solidly on both sides or you risk having too much supply or demand, and alienating your early customers.

Ever so slowly, but consistently...Get some supply, go find demand. Expand. Get some supply, go find demand. Lots and lots of small fly wheels to get going...

Re: 42Floors (YC W12) Raises $12.3M Led By NEA

#19

Post by BroNamath »

jaf12duke wrote: post #15
BroNamath wrote: post #12

I can't believe this site is still around. Yes RE tech is broken, but their overly exuberant posts about the geek culture of the office and hiring practices aren't going to fix that. The fact is, RE brokers like to do deals with each other, landlords trust their brokers, RE deals are quirky. The office market has been on a rocketship ride for the past three years, probably exactly as long as 42floors has been around,…

Totally fair. I may disagree, but it's a fair assertion that the commercial real estate community won't want a tech company getting involved. It's what I heard from virtually everyone when I talked about starting this company. And for months, that was the response that I got. And then something funny happened. We started helping tenants find spaces. Real tenants, spending real money. Landlords got paid and brokers to…

This site seems short sighted. "Tech startups" will soon be an undesirable tenant. Landlords are looking for long-term leases from credit tenants (it's how you sell a building: the stable rent roll. No one wants unsustainable income from a hot sector). They are taking tech startups as tenants now because they overpay for space (with angel money), that would otherwise sit empty. Once the seed money dries up (or Round A, etc) startups will be unable to pay rent and landlords will soon lose their appetite for small short-term leases at above-market prices. Just wait to experience the herd mentality of real estate investors; obviously no one on your team seems to want to remember 2007? Why would they if they are on the payroll of a funded startup and no longer humping it out for RE commissions.

I have spent time on your site and it’s no less convoluted than loopnet, costar, or craigslist (and about 100 others). To me, 42Floors is a prime example of the recent startup mess. An over engineered site with too much funding that no one really needs.

Congrats on your enthusiasm and good luck with your pivot.

Re: 42Floors (YC W12) Raises $12.3M Led By NEA

#20

Post by [deleted] »

jaf12duke wrote: post #7
sethbannon wrote: post #6

My early stage startup has been looking for commercial real estate in New York City and the entire process is just broken. No transparency, no reputation system, no repeat game for brokers. I'm hopeful 42Floors can bring needed innovation to this industry.

let us know if we can be helpful Seth. It's a tough, tough problem. But we're working our asses off to make it easier...

[deleted]
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