Date post: | 21-Jan-2018 |
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My Journey
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Vishal Gupta Entrepreneur | Investor | Ex-‐ Investment Banker | Startups, Technology & Coworking
MISSION: To make entrepreneurship and invesEng in entrepreneurship accessible to all by breaking barriers to informaEon, access and investment
Investment Banker
Corporate Business leader
Investment Manager, Advisor, Freelancer
2002
2012
2015 Full-‐/me entrepreneur, investor and connector
Hong Kong
London
Property
Renewables
Tech
2016: Could things be any beVer for coworking? How WeWork has changed the game for everyone
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5 mn sq P
$1.4 bn
raised
$16 bn
value
Source: Crunchbase, WSJ reports
2003: When things were not so good How Regus went bankrupt
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• Economic downturn • Over-‐supply of office space • Fixed long leases in US • Rentals agreed at peak of market • Sharp downturn in passing rents • Reliance on dotcom and startups –
demand fell away
Dot-‐com bubble burst
1989 – 1st Regus opens in Brussels
1990s – Rapid growth fuelled by startups mushrooming
2000 – Regus IPO
2001 – Expansion across Europe, Americas, Asia
2003 – InternaEonal business operaEng in 52countries
2003 – Regus files for Chapter 11 bankruptcy for its US opera/ons, sells stake in UK business
What went wrong?
How they changed? • Corporate restructuring
• Property JVs, profit sharing partnerships with landlords
• Shib to 30-‐40-‐30 mix (large corp-‐SME-‐startup)
Financing a coworking space
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Average size of coworking spaces has doubled in 2 years Need to find new avenues for capital, (also revenues)!
Source: Deskmag Global coworking survey 2016
Towards mulE-‐accelerator and ecosystem models
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Incubators
GestaEon focus 5-‐15% equity
Discounted services Equity-‐based rent
Accelerators
Investment focus 3-‐10% equity
Structured programme Equity-‐based rent
Coworking
Community focus No equity
Events + networking Cash-‐based rent
Hybrid Ecosystems
Industry incubator host In-‐house accelerator Investment fund Coworking space Corporate offices
Corporate and startup collaboraEon
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• For tech startups and corporate innovaEon professionals
• Large campus -‐ AVracEon of scale • Curated community – by applicaEon
only • Alumni include Uber, SpoEfy, Supercell • For Tech startups
• Focus on funded tech startups • Coworking plus growth services
• For corporates • Industry accelerator programme • Corporate memberships targeted at corporate
innovaEon professionals
• Started with $20,000 and 30 desks in 2011
• Now 7-‐floor campus in SF • New campus opening in London in 2017
with 1,500 capacity
• ObjecEve: To develop Intrapreneurs who think and work like startups
• Week-‐long immersion programme at SF campus with 25 Tata CommunicaEons execuEves from across the world
• Onsite visits to local tech innovators
Case study: How Rocketspace worked with Tata Communica/ons
Corporate-‐backed accelerator
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• Telefonica’s startup accelerator • Access to Telefonica business
development network and contracts • Programme offering:
• 50,000 in cash + 50,000 in services • 7-‐10% equity stake • 8-‐12 months of space
• 130 startups over 4 years • Corporate acceleraEon – providing
insight and guidance to other mulEnaEonal coporates looking to launch their own acceleraEon programmes
Wayra
Pushing the boundaries: VC + IP + Incubator
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• Europe’s first Chinese capital-‐backed ecosystem
• 70,000 sq b / 800 capacity coworking space in prime London
• Business accelerator programme • Separate IP management company
and business transfer plarorm • Cocoon Ventures – InvesEng in tech
companies with potenEal to be scaled to China
Cocoon Networks
AcceleraEng growth, expanding revenue streams
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• VC-‐backed accelerator programme • Founded in Paris in 2013 • 3 pillar approach:
• EducaEon • Unfair advantages (deals) • Access to capital (VC network)
• Up to 5% equity stake • Industry and stage agnosEc • Non-‐cohort approach, 400+ porrolio
companies • AcEve content strategy – 2.5 m
Youtube views • Expanding across Europe
The Family
• Entrepreneur school – Weekend training programmes for aspiring entrepreneurs
• Startup Studio – helping big companies to create startups
Expanding revenue streams
Zero equity accelerator
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• Non-‐profit startup accelerator and compeEEon
• Focus on early stage entrepreneurs • Zero funding and zero equity stake • ParEcipants compete for a prize of
£500,000 at the end of each programme
• 4 months per programme • Free office space, mentoring,
workshops and global network access • Supported by corporate sponsors and
partnership deals
Mass Challenge
Corporate backed insEtuEonal financing
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www.market-tech.com 24
COWORKING SPACESPACE AS A SERVICE IS ONE OF THE BIGGEST OPPORTUNITIES IN REAL ESTATE
ACCESS TO A FULL ECOSYSTEM The opportunity to work, collaborate and socialise within a likeminded community
MAXIMUM FLEXIBILITY AROUND SPACE & LEASE LENGTHYou rent exactly what you need, no wasted space from renting too large offices or commitment to long term contracts – you can grow within the same space
CONVENIENCEFrom additional offices, to multiple meetings rooms, to comfortable break out areas and restaurants all fully serviced, cleaned and maintained, all included in the rates
NO UPFRONT COMMITMENT & CAPEXNo initial capex required or time wasted on fitting out your own office
KEY BENEFITS TO SHAREHOLDERS
KEY BENEFITS TO OUR GROWING PROFESSIONAL COWORKING COMMUNITY IN CAMDEN
� Multiple revenue growth from rents, services and additional spend in foods and markets.
� Coworking and growing a community of technology & creative businesses in Camden Town is an
important pillar of our place-making strategy
• Market Tech acquired cluster of adjoining retail markets in Camden for $650 million
• 16 acre of prime real estate porrolio in Camden Town
• Mar 2015 -‐ Market Tech acquired Interchange building for £49 mn
• Oct 2015 – Interchange Triangle 13k sq b, 278 desks • May 2016 – Atrium 30k sq b, 650 desks • 3rd locaEon Utopia to be launched • 2017 – 1500 desk, music coworking, fashion
coworking
Developing a coworking cluster
How they financed it? • $642 mn capital market financing over 6 months • Dec 2014 – IPO to raise $156 mn • Mar 2015 – ConverEble to raise $174.4 mn • Jul 2015 – Secondary to raise $311 mn • Debt refinanced with 10 year facility with AIG £900 mn
Crowdfunding a coworking space
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• Coworking space for migrant entrepreneurs in East London
• 150 member space • Building a niche community
• Migrant business accelerator • Migrant business show • PublicaEons
• The community will also finance • Raised £100k via crowdfunding
campaign on SEEDRS • Offer discounted membership as
incenEve • Covers fit-‐out and iniEal lease cost
• Important to have early backers BEFORE you launch a campaign
• Build and appeal to a community • Offer a reward • Campaigns with tangible product to
sell do beVer – your customers also become your financiers
• Co-‐working spaces can offer long term discounted membership as incenEve
How to run a crowdfunding campaign
What it takes to succeed? Themes: Let’s discuss • Campuses v/s Mega-‐centre v/s mulEple smaller centres
• City-‐centre v/s suburban locaEon • Commercial v/s Industrial buildings • Equity based rent v/s cash based rent • Parent level or locaEon based financing • How to solve the long lease – short rent problem • Crowdfunding • Equity v/s debt
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What it takes to succeed? Defining your Golden Circle
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MY BUSINESS WHY?? • XX • X
HOW?? • XX • X
WHAT?? • XX • X
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What it takes to succeed? Standing out from the crowd: Purple Cow
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2
MY BUSINESS NOW – What am I doing differently? • XX • X
FUTURE – What can I do differently?? • XX • X
What it takes to succeed? Where can I turn to for finance:
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3 White Knight
Friends & Family Angels VC
Venture equity
Venture debt
PE
Banks
Pension Fund
LOC
Warrants Structured credit
Property JV
Corporate partnership
Overseas capital
M&A HNI
What it takes to succeed? Where can I turn to for finance:
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3
MY BUSINESS Sources of finance I have considered? • XX • X
Sources of finance I could consider? • XX • X
White Knight
Contact details
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Vishal Gupta Co-founder, CEO
Founder
Tech Startups SocialMedia
London, United Kingdom
www.kabeela.life
[email protected] +44 (0) 7788 491 774
Investment
Fundraising Community
@vishthink
Coworking