New-Age Ventures & Why Coworking Spaces Are A Fit for Them

New-Age Ventures & Why Coworking Spaces Are A Fit for Them

Coworking spaces were already witnessing rapid growth before, and their growth trajectory and purpose have drastically changed post the pandemic. 

As hybrid work models take over, many businesses are opting for flexible and community-oriented coworking spaces.

There has never been more emphasis on being in an environment that encourages networking and connections. 

The demand for coworking spaces grew by 41% from the first quarter of 2021 to the second quarter.

It is also estimated that the global coworking industry is expected to reach $13.03 billion in 2025 at a CAGR of 12%.

It shows that coworking spaces aren’t just a haven for freelancers and startups anymore. They are also appealing to established businesses and new-age ventures that dramatically shape the future of society.

The coworking industry is growing aggressively. So it’s time for new-age ventures to embrace coworking as an option for their teams.

Let’s take a look at some of the top ventures and just how they can benefit from coworking spaces.

EdTech Companies

The digital evolution in Edtech didn’t just come out of anywhere. All these years it was picking up pace. It just didn’t get enough attention because of resistance to adopting a modern way of learning.

Then Covid-19 happened and brought about a lot of changes in perspectives. Existing Edtech firms ramped up their scale, and new firms spurred up to fill in the demand for online learning and online assessment.

This surge in the demand has surely captured the interests of investors as they’re extensively capitalizing on virtual learning opportunities.

For example, an Indian-based Edtech startup, upGrad has taken up 1,000 seats in IndiQube’s coworking centers in Bengaluru. It is one of the largest coworking space transactions this year. 

Moreover, the Edtech startup has also received significant funding from venture capitalists because of its growth potential.

In Kenya, some leading EdTech companies such as Firefly Edtech Solutions Limited and Elewa have taken up spaces in Nairobi Garage.

You may ask why there is a demand for Edtech firms to take up space in coworking. EdTech firms are on a hiring spree, calling for the need of ready office spaces where they can quickly get their teams on board. 

A lot of Edtech companies are also opting for coworking spaces because of their work culture. It is appealing to millennials who are increasingly demanding flexible work schedules post-pandemic.

Healthcare Technology

The past few years have shown us how fragile and vulnerable our healthcare infrastructure actually is.

This is where healthcare technology comes to play ensuring safe and accessible care, discover new treatment methods, and provide solutions to challenging medical problems.

Healthtech is one of the fastest-growing industries and is projected to register a CAGR of 13.3% from 2021 to 2030.

But despite the progress the healthcare industry is making in terms of technology and innovation, it is also in dire need of resources.

Targeting healthcare tech for your coworking space can help these companies to provide an environment where their teammates can collaborate and carry out their vital missions.

Some healthcare tech startups that have taken up spaces in Kenya include BYON8 a platform that helps make high-quality healthcare more accessible, affordable, and equal by digitalizing healthcare on an individual level operate from coworking spaces like Nairobi Garage.

Healthcare dictates a lot of our future as a result of which it is getting a lot of attention from investors and governments. 

A coworking space isn’t just a place for these health tech startups but also a place where you can have key stakeholders under one roof such as entrepreneurs, established companies and strategic partners, service providers, and associations.

Content & Digital Marketing

The Content and Digital Marketing industry is one that is becoming popular and is experiencing immense growth. Thanks to the growing need for having an appealing online presence and improving SEO performance.

Content marketing firms are experiencing a stage of high demand across various industries. Marketing companies also strive for an innovative workspace where there is a seamless exchange of ideas and thoughts. 

As we already know the marketing industry is driven by networking, and marketing professionals are constantly looking for the opportunity to strike up a conversation and build valuable professional relationships.

With this in mind, coworking spaces offer the perfect environment for networking and the community is a quick pool for client access for these companies.

More than everything else, marketing companies also need to feel the right energy while working. It’s important for these professionals to share their office space with like-minded individuals and entrepreneurs for their creativity to shine.

Having a digital marketing company in a coworking space will also allow other companies under your space to have easy access to marketing professionals.

FoodTech Companies

The food industry operations have changed dramatically with the introduction of technology and mobile-based applications.

The industry is capitalizing on the consumer demand for convenience, and product freshness. Even with the raging pandemic, food tech grew, more so because it falls into the category of an essential service.

Food tech companies are significantly filling gaps in instant food deliveries—be it groceries or home-cooked food, or restaurant deliveries. The industry is also riding on the success of concepts of cloud kitchen, and agricultural technology.

Looking at their potential, the venture capitalists are putting their best foot forward. They’re actively investing in these companies such as Glovo and the rest to help them increase their productivity and grow to new heights.

Companies like Uber and Jumia also had to create an arm for food delivery such as Uber eats and Jumia Food to tap into the immense convenience that the service offers.

What are more these companies are also finding a home in coworking spaces. This in exchange has seen leading coworking space providers like WeWork launch a food-centric co-working space and innovation lab for food technology startups in May 2020. 

The coworking space is specially dedicated to food innovators working in AI, robotics, kitchen appliances, supply chain, agricultural tech, distribution software, consumer goods, and hospitality.

Fintech Companies

Traditionally, the finance sector has preferred having a personalized place. One of the major reasons is that they can enforce the necessary data security measures and pass the compliance tests.

However, coworking spaces are taking precautions in fulfilling the security demands of the fintech industry to make their offices a safe space to work and collaborate. 

While FinTech has a promising future, you need to remember that confidentiality and security are two major factors that are holding back fintech companies to work in shared spaces.

The collaboration of finance and technology has birthed many new-age ventures. Digital payments, cryptocurrencies, and blockchain technologies are taking the world by storm. 

From 2020 to 2021, the investments in cryptocurrencies and blockchain tech witnessed a 450% jump!

While security is top-notch for these companies, coworking spaces can go an extra mile to not only help in basic security measures of cloud storage, clean-desk policy, and never leaving a screen unattended and unlocked to ensuring they  provide a security infrastructure that gives them the confidence to join you.

eCommerce

In the recent past, eCommerce has turned to play quite a vital role in our daily lives. It is redefining commercial activities around the world. Over the years, eCommerce has evolved in profound ways.

For instance in Kenya, the growth of e-commerce services, while not necessarily returning profits to vendors, has been tremendous. In spite of the fact that space has been unforgiving to the big boys like Safaricom’s Masoko, other tens of players have been doing okay, having been supported by Kenya’s young population that prefers ordering online shopping and also the growth in the internet penetration.

Being a new-age venture e-commerce platforms can benefit a lot from coworking spaces.

A lot of eCommerce companies find the office costs and maintenance overbearing. Apart from the regular costs, eCommerce companies have to deal with a lot more expenses such as shipping, refunds, website maintenance, operations, logistics, and eCommerce order fulfillment.

They’re constantly looking for affordable alternatives and avoid their extortionate rental costs. As a result, they’re turning towards coworking spaces where they can avail everything they get at a private office and more.

eCommerce is also constantly evolving. It needs to have a collaborative and networking environment that allows employees to seek advice from other professionals. 

Coworking spaces like Nairobi Garage make it easy for these ventures to connect with different industry personnel and even outsource certain tasks under the same roof.

Artificial Intelligence & Machine Learning

We cannot talk about the new age without mentioning Artificial Intelligence (AI). Gartner predicts that the global AI software market will reach $62.5 billion in 2022 — an increase of 21.3% from 2021.

For the longest time coworking spaces were linked to being tech hubs and having a key focus on tech startups as they are hubs for innovation. 

Of course with this, a lot of established tech and AI startups are leveraging coworking spaces to foster creativity and connect with other ambitious companies and individuals.

Tech and AI companies also need an environment that allows them to work in solidarity when needed and connect to meet and exchange ideas. Coworking spaces provide them with the best of both worlds, resulting in higher productivity.

AI firms are bringing about a revolution that can go a long way. If you target them, they can focus their attention on scaling and hiring top talent instead of worrying about rents and maintenance.

In conclusion, some of the leading start-uos and unicorns we read about today, started off in coworking spaces. It is because the owners saw the potential and understood their revolutionary nature. If you want your startup to thrive then you need a community and a startup ecosystem, that gives you an opportunity to do that and coworking spaces like Nairobi Garage offer you that environment ability to make a difference and strive for success under your roof. Sign-up  for a desk or two today!