Brooklyn-based Industrious breaks the mold when it comes to coworking. While companies like WeWork and Knotel have made names for themselves around New York City’s startup community, Industrious provides an alternative experience, and is just getting started.
Today, Industrious announced that is acquired Boulder-based Pivotdesk, which is an online marketplace that connects startups that need office space with those that have it to spare. Additionally, Industrious announced an additional $25 million to its Series B, bringing the total round to $62 million. The most recent funding was led by Riverwood Capital.
While the Pivotdesk acquisition will allow Industrious to expand its footprint, the company is also planning on using its new capital to open more than 30 new locations by the end of 2017, including a space in Manhattan. Industrious’s national network currently has coworking spaces in Brooklyn, Atlanta, Austin, Chicago, Columbus, Los Angeles, Minneapolis, Nashville, Philadelphia, Raleigh and St. Louis.
“The way we search for things and research or make purchasing decisions these days is 95 percent digital,” said Industrious CEO and co-founder Jamie Hodari. “If I were a customer I would pull my hair out that there isn’t yet a great digital front end for finding and securing great flexible office space. We’re going to use the Pivotdesk acquisition to build that product, and the biggest way this is going to help Industrious grow isn’t necessarily growing the business itself, but by giving customers the tools they deserve, and that they’ve come to expect in nearly every other industry. If it makes it five percent easier for people to find, create and manage a flexible workplace that works for them, I’ll be happy.”
The company was founded in 2013 by Jamie Hodari and Justin Stewart, whose mission was to create a coworking solution devoid of typical startup staples like ping pong tables and kegerators. Instead, the company creates sophisticated workspaces that lend themselves to productivity, along with more lavish amenities such as fitness centers and private mothers’ rooms.
While Industrious is situated in a crowded coworking market, the Pivotdesk acquisition and recent funding are testaments to its ability to stand out when it comes to the future of work.
“The problem with most companies’ workplace strategy right now is that the two dominant trends they face are completely in opposition to each other,” said Hodari. “First, the continuing need to improve workplace environment, and second, increasing demand for flexibility. These trends are in opposition because the payback period for a great office space is 10 years. Companies that can help businesses resolve that tension —coworking is currently the fastest growing option, but other products will rise — are going to see tremendous growth over the next five-10 years.”
Image via Industrious.
