What is CoWorking

Coworking by definition is a physical space where many companies can work together. The companies benefit from sharing office amenities such as conference rooms, bathrooms, printers, front desk staff, and internet access and by being a part of a community.

According to researchers at the Harvard Business Review:

There seems to be something special about coworking spaces. As researchers who have, for years, studied how employees thrive, we were surprised to discover that people who belong to them report levels of thriving that approach an average of 6 on a 7-point scale. This is at least a point higher than the average for employees who do their jobs in regular offices, and something so unheard of that we had to look at the data again.

The article went on to elaborate why their researchers found such high levels of happiness and satisfaction in coworking spaces:

Unlike a traditional office, coworking spaces consist of members who work for a range of different companies, ventures, and projects. Because there is little direct competition or internal politics, they don’t feel they have to put on a work persona to fit in. Working amidst people doing different kinds of work can also make one’s own work identity stronger. Our respondents were given the opportunity to frequently describe what they do, which can make what they do seem more interesting and distinctive.

Each coworking space will typically have a unique feel both physically in design and layout and as a community.

Types of CoWorking Options

Open Coworking Space

In coworking facilities, there are typically 3 options for how members can work. Some coworking spaces offer only 1 or 2 of the following types while others offer all 3.

Hot Desk or Lounge membership- This allows access to open areas, and often conference rooms. You are not assigned a specific place to work but you come in, find an open seat and are able to get to work. With this membership, you have the benefits of a professional work environment but do not typically have storage space to keep your computer overnight. Think of it like going into a library but with better professional amenities.

Dedicated Desk- This is pretty much what it sounds like, you have your own private desk, you often have a place you can leave your items overnight but you do not have your own private office. This is a great option for anyone who doesn't need a ton of privacy and is working by themselves

Private offices- A private office offers the privacy of an office with the benifits of being located in a coworking space. A bit of the best of both worlds

What You Should Look For in a Coworking Space

Coworking can take on many forms, from an open layout, to private offices, to carefully curated events that make a real sense of community.


A good coworking space provides much more than real estate, it creates an environment for businesses to thrive.

A great coworking space creates a place for people to find purpose in their work.

Why Businesses Choose Coworking

There are many reasons businesses choose coworking, here a few of the main reasons

1. Community and Experience- Where people work can affect the quality of their work. Having a great environment can help a business's work product as well as helping to recruit high-quality future talent.

Being a part of a coworking environment you also get the benefits of the other businesses in your space. For example, maybe you need a lawyer and there happens to be a small law firm working in the same space. This is a win win, the lawyer gets more business and you get the services you need.

2. Money- A business can save a huge amount of money by choosing a coworking space over a traditional office. In New York City, 10 person startup can easily spend well over $150,000 just to get set up with a lease and furnishings. The same company could spend less than $75,000 for a coworking space and also a lot less time and energy setting up the real estate. Below I break down the cost comparison of a 10 person office in NYC.

Private Office Costs 10 Person Office NYC First 12 months

  • Rent- $70,000- 12 months- According to Cushman Wakefield average Manhattan office rents are over $70 per square foot
  • Security Deposit- $70,000- Standard 12 month security deposit
  • Construction Buildout- $10,000-$30,000
  • Furniture- $$10,000-30,000+ Varies by office
  • Printers, Network, Wifi- $$10,000-
  • Typical Commitment Length- 3 years+
  • Ability To Change Office Size- No
  • Total- $160,000-$200,000

Coworking Costs

  • Rent- $65,000
  • Security Deposit- $10,000
  • Construction Buildout- $0
  • Furniture- Provided in rent
  • Printers, Network, Wifi- Included in rent
  • Typical Commitment Length- Month-to-Month
  • Ability to Change Office Size- Yes
  • Total- $75,000

3. Flexibility- As a business grows or shrinks they can change office size to accommodate their changing company. Coworking spaces can have companies ranging in size from 1 person to over 100 people.

Other Amenities

Every coworking space is a bit different but here are a few amenities you can find at most coworking spaces

  • Wifi & Internet (hopefully fast)
  • Coffee
  • Conference Rooms
  • Mail Services
  • Community Manager/ Reception
  • Community Events

Conclusion

Coworking is changing the way people work. While coworking may not be the right fit for every business. It is an excellent way of working that offers great options for many companies to build, grow and thrive.

Written by Josh Bobrowsky CoFounder & CEO of Ignitia Office


7 New York City Startups to Watch Over the Next 12 Months

New York City is one of the best cities in the world for startups. Last year, 421 NYC based startups collectively raised over $9.5 billion.  Many brand-name and billion dollar startups have come from New York.

Some of the most notable are FanDuel, Warby Parker, Blue ApronZocdoc, WeWork, Vice, and Buzzfeed. While their are many large companies that started in NYC, the city is a thriving market for small and midsize startups.

Casper

Founded in 2013, Casper is an e-commerce company that ships extremely comfortable mattresses, pillows, sheets and other bedding accessories directly to their customers’ doors.

Why they’re hot: Casper revolutionized the mattress industry by selling directly to consumers via online marketing. Taking the brick and mortar cost out of a NYC startup allows for huge profit per mattress. Prices are high, quality is good, and I happen to sleep on their product every night. Buy it at noon and it will ship today if you live in the city.

Andela

Andela—which has raised $41 million to date, the company recruits and trains the most skilled software engineers on the African continent and places them in jobs at big-name tech companies based in the United States (e.g., Microsoft and IBM).

Why they’re hot: The company is also backed by the Chan Zuckerberg Initiative and Google. Having a great cause with an ability to really help companies with coding.

 

Slice

Slice is a company that helps mom-and-pop pizzerias transition to the digital era. Pizza to the People is their motto. The company earns $1.95 on each order placed through its platform recently closed a $15 million Series B round.

Why they’re hot: Over the last few years, Domino’s Pizza has fortified its digital sales channels leaving many mom-and-pop pizzerias in the dust. But Domino’s isn’t the only pizza place in the country. Last year, the pizza industry was quite lucrative, bringing in $45 billion. Slice correctly identified a market need and the company now boasts 6,000 partners across the country.

4. Frame.io

Frame.io builds technology designed to make video production collaboration a easier. Working remotely on a film editing project can provide a lot of technical difficulties, frame.io hopes to help solve this pain point.

Why they’re hot: Last year, Frame.io closed a $10 million Series A round.  Additionally the product supports over 150 file formats while enabling users to post threaded, time-stamped comments on film—making the video collaboration process that much easier. Since video content is in high demand,

5. Cheddar

Cheddar is a streaming news service that focuses on financial and tech industries. The company targets millennials who are increasingly cutting the cord and abandoning cable due to ever-increasing prices.

Why they’re hot: Cheddar recently secured an additional $19 million in financing. According to company figures, 8% of millennials have already seen Cheddar content in only one year of business.

6. Lemonade

In 2015, Lemonade began its quest to disrupt the insurance industry by offering a more affordable solution for homeowners and renters alike.

Why they’re hot: The insurance industry is an antiquated industry that is ripe for change. Using artificial intelligence, Lemonade crafts customized insurance policies for each user. Starting at $5/month for renters and $25/month for homeowners, new algorithms may allow for more savings and profitability.

Nothing to do with Becky with the Good Hair.

CB Insights

Founded in 2008, CB Insights is a tech market intelligence platform that analyzes venture capital, startups, patents, partnerships and news to help clients make better decisions. The company closed its first round of financing in 2015 when it took in $10 million in a Series A.

Why they’re hot: CB insights uses a hot technology in a hot PE market.

 

Ignitia Office

A shameless self plug. Founded in 2016 we are bringing amazing designs, exceptional community and great value to the coworking industry. The idea is to craft the best offices, to help build amazing companies and help others follow their dreams.

Why we are hot: Great design, atmosphere & Community. Opening September!

 

Which startups would you include in a list like this? Let us know in the comments below!

 

 

Josh Bobrowsky- CoFounder & CEO


5 Brand-Name Companies That Grew out of Coworking Spaces

Coworking spaces can be inspirational spaces for thriving communities to grow and excel.  A number of startups have grown out of coworking spaces to become brand-name and billion dollar companies. (Interestingly enough, a number of large, established companies have also moved some of their teams into coworking facilities to reap some of the benefits that startups enjoy.)

Here are five companies you’ve heard of that started in coworking spaces. May their stories inspire ideas like your own to thrive.

1. UberImage result for uber logo

By now you’ve heard of Uber, the ridesharing startup that’s currently valued at $70 billion. What you might not have heard of was the fact that a big part of Uber grew out of The Yard, a coworking space in New York City, and RocketSpace, a coworking facility in San Francisco.

Today, Uber operates in more than 80 countries and 660 cities across the world. Cofounded by Travis Kalanick and Garrett Camp Uber stands as the largest ride sharing app.

Uber has major focus on self driving vehicles including ride sharing services and the trucking industry. Lately Uber has been the focus of large amounts of publicity both good and bad.

2. InstagramImage result for instagram logo

In April 2012, Instagram cofounders Kevin Systrom and Mike Krieger sold their platform to Facebook for $1 billion. It was a fast exit: The company was only 18-months-old at the time. At the time the world was baffled by Facebook's willingness to buy a company with no revenue for a billion dollars.

Today in retrospect it was one of the best purchases facebook has made. Instagram currently serves as Facebook's weapon of choice to compete with Snapchat.

Instagram grew out of Dogpatch Labs, a former coworking space in San Francisco. Though the company became too big for the coworking facility rather quickly, the energy and excitement that were inherent parts of the Dogpatch community inspired Instagram until it became a Facebook property.

3. ZipRecruiter   ZipRecruiter

In 2014, ZipRecruiter—a platform that connects jobseekers with companies looking to fill positions—announced it had raised $63 million in a Series A round.

ZipRecruiter was built at Coloft, a coworking space in California that closed in 2016. The company has continued to expand at a rapid clip since it moved to its own space in Santa Monica.

4. Timehop   Image result for timehop logo

If you use Facebook, you’ve come across Timehop, the nostalgia app that allows users to share old memories, statuses, pictures and other updates with their networks. Millions of people use the platform every day.

Timehop’s journey began at New Work City, a since-closed coworking space previously located in lower Manhattan.

“Having an awesome home to independent workers and entrepreneurs is crucial to New York City’s goal to become a major technology hub,” CEO Jonathan Wegener says.

5. IndiegogoImage result for indiegogo logo

The popular crowdfunding site Indiegogo is another company that can trace its roots to a coworking facility. In 2014, Indiegogo closed its Series B round, pulling in $40 million.

Today, Indiegogo is one of the largest crowdfunding platforms in the world. Ironically, the site has been used to finance a number of companies that are based in coworking facilities themselves.

Coworking makes sense to many startups that are growing because of the flexibility and community of the spaces. Every coworking space is a bit different. However, its a great option for many companies.

 

Thanks for reading

 

Josh Bobrowsky- CoFounder & CEO