WeWork raises $6.85M as it expands co-working empire and startup labs

New York based co-working giant WeWork continues to aggressively expand. It recently opened two new spaces in Los Angeles and at Varick Street in New York. Now Venturebeat has learned WeWork has raised $6.85 million in its second round of capital.

“We are going to continue to expand aggressively in New York, as well as pursuing a second space in San Francisco and our first international location in Israel,” said co-founder Adam Neumann. “The funding will help us build out both the community and our technology.”

Neumann wouldn’t say exactly what technology WeWork is planning, but he did say that it hopes to expand the range  of services it offers to members. “We can use our size to bring things like quality legal advice and health care to our community,” Neumann told Venturebeat by phone.

The company is affiliated with a co-working incubator for startups WeWork Labs, founded by Adam Neumann (Egg-Baby), Jesse Middleton (Guy Haus), and Matt Shampine (Onepager). It invited all freelance designers, developers, marketing heads and entrepreneurs to enjoy a desk and fully stocked kitchen for $300 a month.

A growing club of local startups like Consmr, Backstory, Handshake, Startup Giraffe, Superpowered, Munchly, RouteHappy, and NoiseTrade are based out of WeWork.

General Assembly, another new co-working space in New York, recently raised a round of venture capital and expanded its offices. It focuses on education along with communal work space and dedicated desks.

As the pace of Internet investing in New York accelerates, the demand for flexible offices seems to be growing. It remains to be seen if venture-backed housing startups can produce returns that satisfy venture investors.

VentureBeat is opening its first physical office in New York, and ended up choosing WeWork at 34th and Fifth. But just so you don’t think there’s any pay-to-play going on, we broke this news by stumbling on the good old fashioned Form D filing with the SEC. 

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