Knotel, a startup that provides businesses with customized headquarters facilities, announced today that it has raised a round of $25 million.
Based in New York City, the startup is run by cofounders Amol Sarva and Edward Shenderovich, who realized that while companies are agile, their headquarters are not. The duo wants to provide an alternative solution to crowded coworking spaces or long-term leases that require large deposits by offering something they call “headquarters as a service.”
“The flexible spaces we create provide an excellent community of veterans and business leaders who can focus on their company operations and culture while having all their office needs catered by Knotel’s office system,” Sarva, the startup’s chief executive, told VentureBeat in an email.
Companies pay a single price for the space (which includes furniture) and services, which can be managed via Knotel’s app (available for Android and iOS). The startup told us it has several dozen customers, including BBC America, Change.org, Cheddar, Female Founders Fund, and Northzone Ventures.
“Since the teams are relatively large, that makes for thousands of people coming and going from Knotels around New York each day,” wrote Sarva.
Knotel claims it has no competitors. “Everyone always asks us about coworking, which is geared toward smaller companies that need a suite or hotdesk,” wrote Sarva. Perhaps the most obvious competitor is unicorn WeWork.
Invest AG led the round. Bloomberg Beta, 500 Startups, Rocket Internet, Observer Capital, and New York angel investors also participated. Knotel will use the funds to expand to new locations in the U.S. and Europe.
Founded in 2015, the startup currently has 25 employees.