Click here to go directly to the Bloomberg article, “WeWork Rival Convene Raises $152 Million to Fuel Its Expansion“
Cementing its position as the leading partner to commercial landlords, Convene is backed by real estate titans Brookfield and RXR and tech-focused equity firm Revolution Growth.
July 10, 2018 (New York, NY) – Convene announced today that it has secured $152 million in Series D financing. This round of funding more than doubles the company’s previously announced Series C round, bringing its total equity funding to-date to $260 million. The round is led by ArrowMark Partners.
Convene partners with the world’s most prominent property owners to deliver superior meeting and workplace experiences in Class A office buildings. Addressing the increased demand from enterprise companies for highly amenitized, flexible-term meeting and workspace solutions, this new round of funding will be used to grow Convene’s footprint globally, expand its service offerings, and launch a new workplace technology platform.
New investors in Convene include a distinguished set of real estate, technology, and innovation leaders, such as Declaration Capital, QuadReal Property Group, Revolution Growth, and RXR Realty. Returning investors include ArrowMark Partners, Brookfield, CVC2, The Durst Organization, and Elysium Management. Baird served as the exclusive financial advisor to Convene.
“Unlike many players in the flexible office or space-as-a-service category, Convene’s landlord partnership model goes far beyond coworking, and we are proud to partner with the world’s most respected office owners to create inspiring workplace environments for today’s top companies,” said Ryan Simonetti, CEO and Co-Founder of Convene. “We will use our new funding to expand our alliance with landlords and increase the value of traditional commercial office buildings by putting the human experience above all else.”
“The future of the commercial real estate industry is evolving from simply providing office space to providing full-service, flexible solutions for companies that want to attract and retain the best talent,” said Scott Rechler, Chairman and CEO of RXR Realty. “Convene has been at the forefront of understanding and shaping its offering to address the fast-changing demands from established companies for innovative workplace solutions. As a landlord partner with Convene in multiple properties, we have seen firsthand how they both fill a market void for corporate clients as well as provide an extraordinary amenity for building owners. We believe that Convene will play a key role in responding to the shifts occurring in our industry and are excited to be a partner with them on this journey.”
“Convene is well-positioned for long-term success due to their proven focus on enterprise customers and their deep, mutually beneficial partnerships with landlords,” said Steve Murray, Managing Partner, Revolution Growth. “With this round of funding, Convene can achieve the national scale and brand awareness to be a distinguished winner in this growing space.”
More than 50 percent of Convene’s revenue comes from Fortune 500 companies. Convene has earned industry-best NPS customer satisfaction ratings of 91, on par with respected brands like Tesla and Apple and higher than industry competitors and the hospitality industry average.
Convene recently announced its acquisition of Beco, a mobile workplace analytics and data platform, to provide Convene’s commercial real estate landlord partners with valuable insights and data about the workplace.
By the end of 2018, Convene will have 23 locations in five cities totaling approximately 700,000 square feet and is projected to have 1,700,000 total square feet of space in 10 cities by the end of 2019.
Convene (www.convene.com) is the fastest-growing network of full-service, tech-enabled meeting, event, and flexible workspaces. Founded in 2009, Convene has locations in New York City, Boston, Philadelphia, Washington, D.C., and Los Angeles, with plans to expand globally. The company has been named one of America’s 100 Most Promising Companies by Forbes, one of LinkedIn’s Most In-Demand Startups, one of America’s fastest growing companies and Best Workplaces of 2018 by Inc. Magazine, and the #11 Best Workplace in New York by Fortune Magazine.
Jenna Wollemann, Convene