Mindspace raises $72m in flex office drive
Investors have backed the global flex office provider as it looks to further expansion across Europe, the US and Israel.
Founded in 2014, Mindspace operates 32 locations in 17 cities across seven countries and has counted companies like Microsoft, Samsung and Expedia among its customers. Since 2020, it has opened sites in London, Philadelphia, Tel Aviv and in Yakum, north of Tel Aviv.
The company opened its third London location – in the Metro building in Hammersmith – in July last year.
The latest fundraising round was led by Harel Insurance Investments and Financial Services, More Provident Funds, Shalom Meckenzie, Arkin Holdings, alongside existing investors.
Mindspace said that, despite the pandemic, its locations are “almost at full occupancy”. In Israel and Germany, it said, occupancy has exceeded 95% in 2021.
Like other flexible office providers, Mindspace has started making management agreements in the last two years, operating flexible workspace for landlords instead of leasing it.
The operator also entered the hybrid working market earlier this year with its Hybrid product, which allows users to rent on-demand space for one to 12 days per month. Mindspace said that “casual on-demand” contracts have tripled, year-on-year, in the last six months.
The product mirrors similar platforms by companies like Desana, which offers office space and meeting rooms by the hour.
Dan Zakai, CEO and co-founder of Mindspace, said: “We successfully faced the many challenges of Covid. Today our locations are almost at full occupancy and the current investment led by Harel Insurance and More Provident Funds is intended to fulfil the rising demand in the market and to launch new locations in partnership with landlords worldwide.”
He said that customers’ focus has been on their experience in their offices. Apps, data-driven insights and personalised activities have been central to that, which, again, mirrors what other operators and landlords are doing in their space.