Mindspace, a Tel Aviv, Israel-based provider of flex office spaces, raised USD72M in funding.
The round was led by Harel Insurance Investments and Financial Services Ltd., More Provident Funds, Shalom Meckenzie, Arkin Holdings with participation from Yoav Harlap, Kobi Rogovin and Globalworth.
The company intends to use the funds to continue to grow and further expand across Europe, the United States and Israel.
Led by founders Dan Zakai and Yotam Alroy, Mindspace is a boutique flex space provider, presenting a global mindset with a local flavor in the workplace experience for companies of all sizes. It provides designed offices, luxurious lounges, equipped kitchens and meeting rooms, in addition to its community of entrepreneurs, business professionals and established companies.
Founded in 2014 by Zakai and Alroy, the company currently operates 32 branches in 17 cities in seven countries, spread over 100,000 square meters (over 1 million sq. ft). It serves a wide variety of companies; about 41% are large enterprises and corporations and 38% are small and medium-sized companies. In the past year alone, Mindspace launched new branches in London, Tel Aviv, Philadelphia and a new hub and spoke location outside Tel Aviv, at Yakum. Past and present customers include Microsoft, Samsung, Playtika, Taboola, Yahoo!, Expedia, GoPro, and more.
FinSMEs
25/11/2021
In 2021, Mindspace demonstrated a significant recovery when it reached the pre-COVID occupancy levels of early 2020, and even exceeded them with over 95% occupancy in Israel and Germany. The high occupancy levels are not the result of lowered prices as Mindspace maintained its pre-pandemic prices.
In the past two years, Mindspace signed six management agreements with landlords in Europe, Israel and the U.S., including for its recent launches in Israel and Philadelphia. A management agreement is a model that is gaining both momentum and recognition worldwide, inspired by the hotel industry. This innovative concept presents a partnership between the landlord and the flex operator, allowing increased profitability and greater flexibility for the landlord, while providing a relevant response to today’s market landscape.
Earlier in March 2021, Mindspace launched “Hybrid“, a new array of on-demand office solutions for companies and individuals who work under a hybrid model, combining work from home and in-office. The shift to hybrid has been on the rise for a few years and the outbreak of the pandemic has accelerated the process. At Mindspace, the increase of the hybrid trend is noticeable: casual, on-demand contracts have almost tripled in the past six months, compared to the same period last year, pre-COVID.
As part of Mindspace’s innovative development and the current flex trend, tenant experience is taking up a more central position. This experience envelops the customer journey from the first encounter with the office space through the use of the space and its various services, all the way to the end of the work day in the office. Tenant experience is accompanied by technological innovations, such as apps, data-driven insights and personalized activities, that enable the expansion of services and benefits to additional tenants in the buildings.
Sami Babkov, Deputy CEO and CIO at Harel Insurance Investments and Financial Services, Ltd.: “Harel is proud to lead the current investment round with a total funding of $30 million. This investment is an expression of confidence in the flexible workspace model, against the backdrop of COVID’s impact on the office market, and shows confidence in Mindspace’s experienced and professional management team. Through this investment we’re able to diversify and improve our investments in real estate and faithfully serve the customers utilizing Harel’s investment department.
“We believe Mindspace brings an interesting model to the market – both economically and in terms of the value it produces for its customers,” says Ori Keren, CIO at More Provident Funds. “In a short time the company managed to create new standards in the market, to build high loyalty among its customers and is experiencing steady growth.”
Barak Capital Underwriting, Ltd. served as the investment banker in the transaction.
About Mindspace
Mindspace is a boutique flex space provider, presenting a global mindset with a local flavor. We redefine the workplace experience for companies of all sizes. Our beautifully designed spaces, personalized level of service and carefully curated events foster enhanced employee engagement and a strong sense of community, accommodating the way people work, innovate and grow. Our customer base includes blue-chip companies, enterprises and SMBs, in 32 locations, 17 cities and seven countries across Europe and the US. Mindspace is home to corporations and large companies such as Microsoft, Samsung, Playtika, Yahoo!, Expedia, GoPro, Taboola, Techstars Accelerator, Barclays Bank, Klarna and more.
Amongst its landlord partners are JTLV2, Patrizia, an affiliate of Rubenstein Partners Ltd., REIT1 and Rogovin-Tidhar.
For further information please visit Mindspace.me, or follow Mindspace on LinkedIn, Twitter, Facebook or Instagram.
Contact:
Nicole Nanikashvili
[email protected]
SOURCE Mindspace