Mindspace, the Israeli start-up finding workspace solutions for companies of all sizes, has raised another $72 million. This round was led by Harel Insurance Investments and Financial Services Ltd., More Provident Funds, Arkin Holdings, and included participation from existing investors such as Yoav Harlap, Kobi Rogovin and Globalworth.
Working spaces continue to rise
Mindspace provides well-designed offices, luxurious lounges, fully equipped kitchens, phone-booths, meeting rooms and event spaces. From open space desks to private offices, they offer workplaces that suit the unique needs of their clients. They allow greater flexibility, shorter-term commitments, and lower financial risk, which is a great solution for times of economic slowdown. The partnership between the landlord and the flex operator allows increased profitability and greater flexibility for the landlord while providing a relevant response to today’s market landscape. It is these benefits that have led to the global increase in demand for their spaces.
Mindspace serves leading entrepreneurs, business professionals and established companies. About 41% are large enterprises and corporations and 38% are small and medium-sized companies; their leading customers are in industries of technology, finance, and service provision. Past and present customers include Microsoft, Samsung, Playtika, Taboola, Yahoo!, Expedia, and GoPro. The plan on using this investment to continue its expansion in Europe, the United States and Israel.
Covid-19 won't get in their way
While most of the commercial real estate industry took a hit because of COVID, the flex market continued to grow. Even with maintaining its pre-pandemic prices, Mindspace demonstrated a significant recovery in 2021, when it reached the pre-COVID occupancy levels of early 2020- it even exceeded them with over 95% occupancy in Israel and Germany. In the past two years, Mindspace signed six management agreements with landlords in Europe, Israel, and the U.S.
Additionally, to keep up with the COVID trends, 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. Though 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 in hybrid, casual, on-demand contracts have almost tripled in the past six months, compared to the same period last year, pre-COVID.
"Mindspace is experiencing an impressive growth momentum and high demand in all its locations", says Dan Zakai, CEO and Co-founder of Mindspace. “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 fulfill the rising demand in the market and to launch new locations in partnership with landlords worldwide”.