Let the desk-claiming commence! The coworking space company NextSpace has just raised $825K in an effort to fuel expansion and take advantage of the tidal wave of coworking spaces sprouting up across the U.S. With this cash infusion, the company’s total raise so far comes to $1.7MM according to one of its founders. This total comes from both angel investors and smaller private investments.
NextSpace is currently up to 6 locations across California, with a 7th space at Berkley opening soon. The company’s stated goal is to not just have desks for rent, but to create connections and a feeling of community between its members. Founded in 2008 in Santa Cruz, the company has become a major player in the California coworking scene.
This latest raise comes as coworking spaces explode nationwide. What was once considered as an offshoot of the accelerator craze, coworking spaces have emerged as a unique industry focused on catering to individual entrepreneurs and small teams. While these spaces offer many of the benefits of a traditional accelerator, they have reversed their the economics. Whereas accelerators almost always invest in applicants’ companies, coworking spaces require individuals to pay upward to $500 a month to rent a desk and gain access to the space.
It will be interesting to see how large NextSpace, and coworking spaces in general, can grow – especially as there are growing rumblings of an “incubator bubble.” No one knows if coworking companies would be affected by any downturn in the incubator market, indeed they could very well see an uptick in membership. If that is the case, NextSpace will be well situated to pick up many California entrepreneurs as new customers.
Photo source: NextSpace Flickr
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