$5B co-working space operator to open downtown

Jan 16, 2015
Austin Business Journal

Co-working space operator WeWork Companies Inc. plans to open next month a location in downtown Austin — the company's first in Texas


The New York-based company is opening a new space at 600 Congress Avenue on Feb. 2, officials said Wednesday


WeWork, which was founded in 2010, enables members to lease common area spaces, labs or offices. The cost of leases depend on locations. The company was founded by CEO Adam Neumann and claims more than 13,000 members in 23 locations in six U.S. cities. The company completed a $355 million financing in December and is now reportedly worth $5 billion


Neumann told the Wall Street Journal he plans to expand WeWork to 60 location during the next year


About 15 co-working spaces operate in Austin. Most are independently owned businesses


WeWork's move comes four months after one of Austin's first co-working space operators, Conjunctured, revealed plans to close down its East Seventh Street business as its founders turn their attention to a new project that aims to apply co-working concepts to other businesses and organizations


Conjunctured launched in 2008 and became home to dozens of local entrepreneurs — many working on technology startups. Founder David Walker said in August Conjunctured included 70 members


The Capital Factory, which operates in the Omni Hotel building downtown, is a combination co-working space and business incubator that has grown to become popular with local technology startups


Last week, it completed an expansion to the entire fifth floor of the building after taking office space there 18 months ago. The additional space is designed to accommodate larger startups of up to 15 workers each, Managing Director Joshua Baer said


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