Monday, May 23, 2011

Next Space Closes Angel Round for $625,000

Next Space Closes Angel Round for $625,000

I provide location advice for owners and occupants of industrial buildings in Southern California. I was intrigued by this article by Joseph Wise entitled, "Next Space Closes Angel Round for $625,000". This concept, called co working, is very popular in the densely populated cities in Europe and I wonder if it will catch on here? Someone is betting heavily that it will. The article is re printed below or you can click the link below to be directed to the article.

May 21, 2011
By Joseph Wise

So how ingenious is a business model that is centered around asking work at home types to pay for the the right to go to work? It’s smart enough to lure 625k of Angel round investment, that’s how much.

You heard that right. Professionals who have likely dreamed of telecommuting from the first day they ever stepped into the “real world” and who have somehow managed to fulfill that dream, are craving a central meeting place where they can gather with peers, collaborate creatively, give and receive advice, and generally act the way they would had they never achieved their work from home dream in the first place. And they are willing to pay for the privilege. The reason? It’s simple boredom.

Welcome to the life and times of the “Stir Crazy 300+”, as in there are 300-500 million people currently working from home, and for obvious reasons the number is growing all at a steady clip. Next Space’s idea is pretty simple: provide a place for these folks to go when they just can’t stand to look at the same four walls for a minute longer.

While many telecommuters find refuge in coffee houses across America and around the world (are you seeing familiar faces every time you hit Starbucks?), as working from home becomes more and more common, it seems the natural time to address some needs which the wireless Coffee Shops don’t address. At least that’s Next Space’s bet.

So why Next Space? Equipment for one thing. Not very convenient to pack up the laptop and head to Fedex/Kinkos every time you need to print, is it? Add to that wishlist redundant wireless, fax, conference room and you get the feel for what Next Space is selling.

The company has 3 locations throughout California and has recently reached 400 members (individuals and small businesses). Membership packages range from $150-$2500 based on the number of employees participating. The company intends to use the recent Angel round funding for expansion and targeting relationships with larger companies that can conceivably cut overhead by simply reducing square footage.