We know that long-term rentals are no longer a move, but in San Francisco Code: has a hotter approach. nor is it a collaborative effort. The company he co-founded Christel Rohout and: Dave Shumanstarted in 2018 to create more flexible office space for companies whose employees want private, flexible workspaces.
The most disruptive belief at a startup these days is one that disagrees with the co-working model popularized by WeWork. Unlike WeWork, which sold desk space to workers on a shared floor, Codi believes people want to go to a private space, just a few days a week. Startup is a marketplace that matches companies with properties that meet their flexibility requirements. It then helps make the moving process as smooth as possible, from design to IT to even office snacks and cleaning services.
And, like many startups, it wants the best of both worlds: privacy and community, flexibility and dedicated space, scale and specialization.
Codi announced today that it has raised a $16 million Series A round led by Andreessen Horowitz. The investment comes weeks after the company announced it had invested in Flow, WeWork founder Adam Neumann’s next bet. both investments show the company’s interest in a more flexible but key future of real estate.
Rohout isn’t too worried About sharing venture capital with WeWork’s founder. A16z investment partner Jeff Jordan took a seat on Codi’s board as part of the round, while Marc Andreessen joins Flow’s board. according to the New York Times. The company announced a while ago its plans to become a “far first” organization.
“A lot of our companies come from WeWork because they want to finish it,” Rohout told TechCrunch. He says the top two priorities for companies today are: first, to have their own space so they can build and develop the company culture and adapt it to their needs, and second, to find a space for employees to go to that is not centralized. downtown and doesn’t take long. Codi, says the co-founder, offers the best of both worlds, with the flexibility to work from anywhere, sometimes, and the uniqueness of a private office space.
It may be true that tech workers generally don’t want to go into the office five days a week anymore, but as employers try to figure out what the new personal speed should be, the flexible office space may also present its own frustrations. Codi needs to convince employers that it makes more sense to go to a flexible workspace managed by Codi than to open a smaller, independent office.
Codi claims it has cut the time it takes to open an office from six months to four weeks. Codi can reduce the lease term from 36 months to six months with options to extend the contract if needed. It also offers a concierge team to handle all of its various services, which the startup says can save tens of thousands of dollars a year.
In terms of real estate, Cody owns no buildings. Instead, it partners with building owners to create recurring revenue streams for properties that would traditionally only make money from long-term tenants or an entire building scale. The co-founder declined to share the number of clients it currently has, but said the startup has more than 100 office buildings in both New York and the Bay Area.
It’s a smart move to consider with common scaly headaches. For example, Codi needs to address shorter commute times with more and more hotspot offices for employees, no matter where they are at home. If this is the case, the office may become more fragmented over time if trying to meet the concentration needs of employees. Kind of the opposite of individual work goals.
There is a common misconception between what people say and what they actually do. If there’s one thing hybrid work has taught us, it’s that the world is constantly changing its mind. Even with a flexible lease, what happens if a startup wants to go from two days a week to five days a week for an extended period of time? It’s not necessarily Kodi’s problem to solve, but it certainly could complicate the broader vision of creating flexible, private workspaces.