5/7/2019

How to get Funding for Your Coworking Space

A new coworking space requires planning and capital. Some operators might think that once they sign the lease, it won’t be too challenging to sell memberships and make instant profits due to the high demand for coworking spaces. However, some coworking spaces do fail, with the lack of community and funding being one of the two biggest reasons. Like any other business, it may be prudent to secure some outside funding as a safety net. If you are looking for someone interested in a coworking space investment, here are a few tips on how to find investors.

Create a Coworking Space Financial Plan

Before you can find investors, you first have to define your business plan fully.

1. Write a Mission Statement

Here is where you can define your community and target audience. What type of coworking space are you creating? Consider whether you are going to serve a niche community and offer special services like 3-D printing, childcare, or have a wellness-oriented space. Be specific here and decide how your space will help your community members.

2. Create a Pitch Deck or Presentation

The pitch deck is how you attract investors, customers, partners, or co-founders. The pitch deck should introduce you, your team, and explain why you’re business matters. It should also show what market you are trying to capture and what makes your business model different from others. Keep your presentation short and to the point to keep the attention of your audience.

3. Build a Detailed Business Plan and Budget

Next, you should determine what your income sources will be. How many desks or private offices will you offer and what you will charge for that? Determine how much money you can bring in monthly. Next, you should also determine your fixed and variable costs. Things like security software, WiFi, snacks, coffee, utilities, and a cleaning service should all be tallied. Try to predict one-time spends including decorating/rennovation costs, furniture, and more.

4. Seek Out Potential Investors or Funding Resources

Most likely, you will need to have some extra assistance in starting your coworking space. Now that you have a coworking space financial plan, you can start to explore different methods of getting financial backing. Some options might include applying for grants or loans. But, there are many other coworking space investment options available to you.

Crowdfunding

Crowdfunding has become popular in recent years thanks to sites like Kickstarter. It allows you to capitalize on the strength of your network by providing a platform for people to invest small amounts of money in exchange for a reward. Some coworking spaces might choose to offer memberships in exchange for early funding.

The Coven, a coworking space that is marketed towards women and non-binary individuals, ran a crowdfunding campaign in 2018. They raised more than $315k from the platform iFundWomen.

How to Crowdfund

Running a successful crowdfunding campaign can be difficult. The Coven made sure to tell their story in a compelling way on the platform, and then brought people into their community for events. These networking events helped the founders meet influential women in their community, which in turn helped to strengthen their online marketing presence.

Venture Capital Investment

Venture Capital (VC) is an individual investor or a group of investors that provides capital, expert advice, or access to networks to help a business grow.

Right now, the dominant coworking space WeWork has taken a big chunk of the venture funding in the coworking market and has raised more than $8.6 billion. More and more venture capital investment opportunities are popping up in the market due to the rapid growth of the coworking industry.

WeWork isn’t the only coworking company that has taken advantage of venture capital investments. The Wing, a women-only coworking space, raised $32 million last year, and designer-focused Fuigo raised $4 million. These niche coworking spaces have created a unique member experience, which is helping to draw in investors.

How To Secure A Venture Capital Investment

If you are interested in finding a venture capital investment, you should first assess what this will actually mean for your business. Often, venture capitalists will invest funds in exchange for a percentage of the business. Consider if you are prepared to give up ownership of a portion of your business.

You should also look into specific venture capital firms and see what type of investments they have made in the past. For example, investors who have funded technology- or software-based companies probably won’t be as interested in your pitch as a VC who has invested in coworking spaces before.

Angel Investors

An angel investor is often an individual, usually a successful business person, family, or friend, who will be investing their own money. Because this relationship is a bit more personal, it requires extra planning before you jump into the partnership. Make sure to know what kind of role you want the investor to have to create the best dynamic possible.

How to Find an Angel Investor

Know what you are looking for in your potential investor. Frequently, an angel investor will have previous entrepreneurial experience and can help advise you through the process. According to Ralph Kroman of WEirdFoulds LLP, the average angel investor wants to keep the investment for five to seven years and tends to invest up to $150,000.

Look for your investor close to home, because many angel investors like to play an active role in the business. Networking at business and trade organization meetings, trade fairs and events, or community organizations to get out there and meet people. You can also find connections at the Business Development Center or Community Futures Offices in your town or city.

Getting funding for your coworking space takes time and energy. Plan what sort of coworking space you want and try to find an investor who is interested in your business plan. Luckily, there is plenty of capital to go around for all new coworking spaces, as long as you know how to market yourself.


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3. Benefits of Tagging Others

Social data also describes the interaction between social media users. While comments, likes, and shares are the most obvious forms of interaction on social media, tags are another form of communication between social media users. 

Tagging is one of the most effective tips for coworking on social media. When it comes to promoting your coworking space, tags do an amazing job at increasing your visibility. On Facebook, for instance, your post will have more reaches if you tag others:

Image credit: CENTRL Office

If you often organize events at your coworking space, you can tag the participants. If you have some special offers, tag someone who helps you promote them. Any tag conveys social data, as it transfers information from one user to another. It’s a great way to become more visible online and attract potential clients. 

In Conclusion

Like any other big data, social data has limitations, as not every social media user shares information. Nevertheless, social data is still very effective for marketing purposes, as it can help your coworking space become more recognizable. 

Using the above-mentioned social data techniques together will help you increase visibility, as they will help others find your coworking space more easily. In general, these techniques are aimed at targeting large numbers of people and help them easily navigate the space of social media to find the best coworking spaces. 

Platform

Location

Croissant

International

Included.co

International

Hubble

London

Coworker

International

Instant Offices

International

Pickspace

International

Share Desk

International

Happy Desk

International

DesksNear.me

International

DeskTime

International

Coworking London

London

Desk Pass

International

Copass

International

Coworking Wiki

International

Desk Surfing

International

Near Desk

US

Liquid Space

International

GoCoWo

International

Find Workspaces

US

Sneed

India

Ofixu

International

Meetings Booker

International

Qdesq

India

eWorky

International

Share your office

US

Spacelist

US and Canada

42 Floors

US

Office List

US and Canada

Coffices

International

Breather

US, Canada, Europe

Setting

Berlin

Key to Office

International

Peerspace

US and Europe

Bizly

US

Spacewhiz

India

Beewake

US and Europe

Awfis

India

Allofficecenters

Germany

Splacer

US

Lexc

International

Desk Camping

International

Worksnug

International

Seats 2 Meet

US

Coworking.Coffee

International

Commercial Cafe

US

Preferred Office Network

US

Heydesk

International

Office Freedom

International

Flexas

International

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