Spacemade completes £2m fundraise as it plans for future growth

Spacemade has announced the completion of a £2m fundraise, which it will use to progress its aim of reaching 50 spaces in the UK in the next three years. The business a first-of-its-kind operational partner for landlords looking to provide a bespoke flexible workspace offer directly to their customers successfully attracted equity from a collection of investors from the real estate, finance, media, and tech worlds.

Spacemade will use the investment to grow its operational infrastructure and expand its team with the best talent to continue to drive the business forward and fulfil the company’s vision of creating a digitised network of individually branded spaces across the UK with a focus on best-in-class amenity.

To enhance this network, the company has just launched a new online marketplace for its spaces which will help users find the most appropriate space within the network.

The success of the fundraise comes at a time when others are struggling to raise capital. It demonstrates the trust investors place in the proven success of Spacemade’s business model.

The group now has 10 buildings under operation in both city centre and suburban locations via management agreements with high-profile landlords such as CBRE Investment Management and Southern Housing Group. Several of the buildings are already oversubscribed, with Spacemade having to cap memberships.

In recent months, Spacemade has announced four new building signings – including 27,000 sq ft of flexible workspace at 10 Brindleyplace, Birmingham’s largest office development to complete this year signed a new boutique 15,000 sq ft space in Putney and launched two new neighbourhood spaces in Wimbledon and Cricklewood.

It will also be delivering a 60,000 sq ft mixed-use creative quarter in Hackney Wick. Spacemade will be providing a fully serviced flexible workspace building together with integrated maker spaces for over 800 members.

Jonny Rosenblatt, co-founder at Spacemade, said: “The success of our latest fundraise clearly demonstrates the explosive potential of the flex market as well as the trust landlords place in our track record. There is a clear disconnect between what occupiers want from their working environment today flexibility, amenity, space on demand and what landlords are traditionally set up to do.

“The real estate market is having to move away from simply allocating capital to generate a passive, bond-like income. We see ourselves as the bridge between the two, delivering hospitality-driven operational real estate. Investors have recognised this shift and want to be part of the journey as we grow.”

Dan Silverman, co-founder at Spacemade, said: “We could not be more excited about the future of the Spacemade platform. With zero leases, we have borrowed many of the learnings from the hotel world and have built a truly asset-lite business model that we are totally focused on scaling across the UK.”

By Mark Adair – Correspondent, Bdaily

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