Real Estate technology company Knotel, the network of custom locations that provides modern businesses with adaptable headquarters, raised $25 million in Series A funding. In response to the overwhelming demand from company leaders asking for more locations and space, Knotel has already opened 10 locations in New York and this investment round will be used to add 40 more locations in the next year.
Founded in 2015 by established entrepreneurs and investors Amol Sarva and Edward Shenderovich, the idea for Knotel sparked while running their own office and realizing companies are agile but their headquarters aren’t. By observing the time and money expended on leases at the CEO level, Amol and Edward noticed the opportunity to help these founders grow their enterprises without the headaches of traditional real estate, so they set out to do something about it.
As a transformational real estate technology company, Knotel currently provides over 50 enterprises, including VenueBook, Cheddar, CultureIQ, and Change.org among others, with custom headquarters in its various locations throughout New York City. Knotel caters to the flexibility that modern businesses demand, creating specifically tailored headquarters on-demand that are culture-coded to each company’s unique profile. In addition to offering quick setup and move in support, Knotel eliminates the antiquated real estate practice of being locked into long-term leases, giving their community of visionary leaders freedom from tedious and costly overhead logistics that require large upfront deposits.
“With the world of work rapidly changing in every other sense, we are creating a better environment for serious business leaders that allows them to be agile, grow fast and save money,” said Sarva, Knotel co-founder and CEO.
Despite the recent necessity for today’s businesses to have more fluidity with their real estate, only 0.1% of commercial office spaces are flexible and the multi-trillion dollar market is still dominated by long-term lease agreements.
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