WeWork: Now a $5B Co-Working Startup
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Re: WeWork: Now a $5B Co-Working Startup
#2This got me wondering, why hasn't anyone made an airbnb for office space? (Or is that what this company does)
Re: WeWork: Now a $5B Co-Working Startup
#3Instead of thinking of WeWork as Airbnb for desk spaces, I like to think of them more like office hostels. They are relatively cheap spaces depending on how much of it you need and and how private of an area you want.
They offer community events and shared spaces to help connect founders with as many other people as possible. They're not all startups like at accelerators, but also include remote office workers from big companies who haven't rented an official space yet. So it is quite the diverse crowd.
If you like working in coffee-shops, give WeWork a try. It was a worthwhile couple of months and I met some good friends.
Re: WeWork: Now a $5B Co-Working Startup
#4This got me wondering, why hasn't anyone made an airbnb for office space? (Or is that what this company does)
There's been a number of attempts at this - see ShareDesk.
Re: WeWork: Now a $5B Co-Working Startup
#5> “If I showed you their cash-flow statement, you would not compare it to a real-estate company,” said Henry Ellenbogen, a portfolio manager at T. Rowe Price. “You’d compare it to a brand or tech company—maybe Chipotle or Uber.”
> WeWork said its December revenue puts it on an about $150 million annual revenue run rate. It also said the month’s annualized operating income puts its valuation at roughly 100 times income. It expects to grow significantly in years ahead, which would lower that ratio. Landlords typically trade between 18 times and 20 times earnings, according to Jed Reagan, an analyst at real estate consultants Green Street Advisors.
> Price depends on location. In the company’s Financial District headquarters, it charges $400 a month for a desk and $1,400 a month for a small two-person office, well above the area’s rate for such space.
> The business is a risky one in which its costs, fees paid to landlords, are fixed, but its revenues from startups and established businesses can fall quickly when the economy slows.
> “The small-to-medium-size businesses, they get particularly impacted in a recession,” said Jon Halpern, who ran shared office space firm HQ Global Workplaces in the early 2000s.
> HQ grew rapidly in the run-up to the dot-com bust. But in the recession that followed, its value plummeted. It ultimately sold itself to Regus.
Let me guess: this time it's different?
Re: WeWork: Now a $5B Co-Working Startup
#6This got me wondering, why hasn't anyone made an airbnb for office space? (Or is that what this company does)
https://desksnear.me/
http://www.peerspace.com/
Loosecubes is another that recently shut down. Kodesk doesn't look like is is around anymore either.
Here's a Quora answer with a bunch of them: http://www.quora.com/What-are-all-of-the-sites-that-do-Airbn...
And Airbnb's 'Airbrb' April Fools: http://blog.airbnb.com/introducing-airbrb/
Re: WeWork: Now a $5B Co-Working Startup
#7We need this in Toronto
Re: WeWork: Now a $5B Co-Working Startup
#8> “If I showed you their cash-flow statement, you would not compare it to a real-estate company,” said Henry Ellenbogen, a portfolio manager at T. Rowe Price. “You’d compare it to a brand or tech company—maybe Chipotle or Uber.” > WeWork said its December revenue puts it on an about $150 million annual revenue run rate. It also said the month’s annualized operating income puts its valuation at roughly 100 times incom…
I have a hard time understanding why you would not compare this to real-estate. Its certainly not a brand or tech play. If the market slowed it would certainly take a hit. Most of these places have monthly contracts and its highly tied to how well the economy is doing.
With that said, I really do appreciate the services these kinds of places offer. While they charge above market rate for sq.ft., they make up for it in services. I do not have to worry about anything within the office and can simply work. They usually have amazing internet, some free coffee/drinks and cater towards keeping me being productive. They offer nice community benefits as well.
Re: WeWork: Now a $5B Co-Working Startup
#9Paywalled. I wish the submission link went to the full article.
Re: WeWork: Now a $5B Co-Working Startup
#10Is there history behind the $355MM Series A funding, and does anyone have statistics for other large A rounds? I have never heard of such a large investment on the front side.