Jun
04
2019
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VCs bet $12M on Troops, a Slackbot for sales teams

Slack wants to be the new operating system for teams, something it has made clear on more than one occasion, including in its recent S-1 filing. To accomplish that goal, it put together an in-house $80 million venture fund in 2015 to invest in third-party developers building on top of its platform.

Weeks ahead of its direct listing on The New York Stock Exchange, it continues to put that money to work.

Troops is the latest to land additional capital from the enterprise giant. The New York-based startup helps sales teams communicate with a customer relationship management tool plugged directly into Slack. In short, it automates routine sales management activities and creates visibility into important deals through integrations with employee emails and Salesforce.

Troops founder and chief executive officer Dan Reich, who previously co-founded TULA Skincare, told TechCrunch he opted to build a Slackbot rather than create an independent platform because Slack is a rocket ship and he wanted a seat on board: “When you think about where Slack will go in the future, it’s obvious to us that companies all over the world will be using it,” he said.

Troops has raised $12 million in Series B funding in a round led by Aspect Ventures, with participation from the Slack Fund, First Round Capital, Felicis Ventures, Susa Ventures, Chicago Ventures, Hone Capital, InVision founder Clark Valberg and others. The round brings Troops’ total raised to $22 million.

Launched in 2015 by New York tech veterans Reich, Scott Britton and Greg Ratner, the trio weren’t initially sure of Slack’s growth trajectory. It wasn’t until Slack confirmed its intent to support the developer ecosystem with a suite of developer tools and a fund that the team focused its efforts on building a Slackbot.

“People sometimes thought of us, at least in the early days, as a little bit crazy,” Reich said. “But now Slack is the fastest-growing SaaS company ever.”

“We think the biggest opportunity in the [enterprise SaaS] category is going to be tools oriented around the customer-facing employee (CRM), and that’s where we are innovating,” he added.

Troops’ tools are helpful for any customer-facing team, Reich explains. Envoy, WeWork, HubSpot and a few hundred others are monthly paying subscribers of the tool, using it to interact with their CRM in a messaging interface and to receive notifications when a deal has closed. Troops integrates with Salesforce, so employees can use it to search records, schedule automatic reports and celebrate company wins.

Slack, in partnership with a number of venture capital funds, including Accel, Kleiner Perkins and Index, has also deployed capital to a number of other startups, like Lattice, Drafted and Loom.

With Slack’s direct listing afoot, the Troops team is counting on the imminent and long-term growth of the company’s platform.

“We think it’s still early days,” Reich said. “In the future, we see every company using something like Troops to manage their day-to-day.”

May
13
2019
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Market map: the 200+ innovative startups transforming affordable housing

In this section of my exploration into innovation in inclusive housing, I am digging into the 200+ companies impacting the key phases of developing and managing housing.

Innovations have reduced costs in the most expensive phases of the housing development and management process. I explore innovations in each of these phases, including construction, land, regulatory, financing, and operational costs.

Reducing Construction Costs

This is one of the top three challenges developers face, exacerbated by rising building material costs and labor shortages.

Apr
24
2019
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Managed by Q launches a new task management feature for office managers

Managed by Q, the office management platform recently acquired by WeWork, has today announced the launch of Task Management.

The feature comes to Managed by Q by way of Hivy, a startup acquired by MBQ back in 2017, that focuses on connecting a company’s employees to the office manager that handles their requests.

Pre-Hivy, collecting requests and tracking projects across a large number of employees was a tedious, fragmented process. Hivy created a dashboard that organizes all those requests in a single place.

Since the acquisition, Managed by Q and Hivy have been working to integrate their respective platforms. Where Managed by Q connects office managers to the right vendor or MBQ operator to handle the job, the new Task Management system will connect office managers with the employees making the requests in the first place, essentially putting the entire pipeline in a single place.

Obviously, the path to full integration was a long one.

“What I think matters most,” said Hivy co-founder Pauline Tordeur, speaking about the process of intertwining two separate products, “is that we knew why we were doing this and what the future would look like when we integrate. Having this vision and outlook from the very beginning is important.”

The timing is interesting in that this is the first product announcement Managed by Q has made since it was acquired by WeWork.

“It’s hard to describe the feeling,” said Managed by Q co-founder and CEO Dan Teran of being acquired by The We Company. “There is a perception of WeWork from the outside, but since I’ve been spending a lot of time getting to learn the business firsthand, I think there is just so much potential.”

He noted that Managed by Q is indeed setting out to integrate with WeWork in a way that’s similar to the process Q just finished with Hivy.

“We set out to build the operating system for space, and one of the biggest things we missed is the space itself,” said Teran. “That’s actually the hardest part for most people. So now that becomes another ingredient we can deliver to our customers.”

Apr
03
2019
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WeWork acquires Managed by Q

Managed by Q, the office management platform based out of New York, has today been acquired by The We Company, formerly known as WeWork.

Financial terms were not disclosed. The WSJ reports that it was a cash and stock deal. Managed by Q, which has 500 employees, will remain as a wholly owned separate entity and CEO Dan Teran will remain following the acquisition to join WeWork leadership.

Upon its latest financing in January, Managed by Q was valued at $249 million, according to PitchBook.

Here’s what Teran had to say in a prepared statement:

We are excited for this incredible opportunity to deepen our commitment to realizing our ambitious vision of building an operating system for the built world. WeWork is uniquely positioned to invest in workplace technology and services, and I look forward to partnering with their team to build more robust products for our clients and create a global platform to help companies push the bounds on our collective potential.

Managed by Q was founded in 2014 with a plan to change the way that offices run. The platform allowed office managers and other decision-makers to handle supply stocking, cleaning, IT support and other non-work related tasks in the office by simply using the Managed by Q dashboard. Managed by Q serves the demand through a combination of in-house operators and third-party vendors and service providers.

Notably, Managed by Q took a different tack than most other logistics companies, employing their operators as W2 workers instead of 1099 contractors. Moreover, Managed by Q offered a stock option plan to operators that gives 5 percent of the company back to those employees.

The company has raised a total of $128.25 million since launch from investors such as GV, RRE and Kapor Capital. Managed by Q currently serves the markets of New York, San Francisco, Los Angeles, Chicago, Boston and Silicon Valley, with plans to aggressively expand following the acquisition, according to the WSJ.

Not only has Managed by Q swiftly matured into a big player in the NY tech scene and Future of Work space, but it has also fostered interesting competition and consolidation within the space. Managed by Q has itself made several acquisitions, including the purchase of NVS (an office space planning and project management service) and Hivy (an internal comms tool to let employees tell office managers what they need).

Mar
27
2019
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Proxy raises $13.6M to unlock anything with Bluetooth identity

You know how kings used to have trumpeters heralding their arrival wherever they went? Proxy wants to do that with Bluetooth. The startup lets you instantly unlock office doors and reserve meeting rooms using Bluetooth Low Energy signal. You never even have to pull out your phone or open an app. But Proxy is gearing up to build an entire Bluetooth identity layer for the world that could invisibly hover around its users. That could allow devices around the workplace and beyond to instantly recognize your credentials and preferences to sign you into teleconferences, pay for public transit or ask the barista for your usual.

Today, Proxy emerges from stealth after piloting its keyless, badgeless office entry tech with 50 companies. It’s raised a $13.6 million Series A round led by Kleiner Perkins to turn your phone into your skeleton key. “The door is a forcing function to solve all the hard problems — everything from safety to reliability to the experience to privacy,” says Proxy co-founder and CEO Denis Mars. “If you’re gonna do this, it’s gonna have to work right, and especially if you’re going to do this in the workplace with enterprises where there’s no room to fix it.”

But rather than creepily trying to capitalize on your data, Proxy believes you should own and control it. Each interaction is powered by an encrypted one-time token so you’re not just beaming your unprotected information out into the universe. “I’ve been really worried about how the internet world spills over to the physical world. Cookies are everywhere with no control. What’s the future going to be like? Are we going to be tracked everywhere or is there a better way?” He figured the best path to the destiny he wanted was to build it himself.

Mars and his co-founder Simon Ratner, both Australian, have been best buddies for 10 years. Ratner co-founded a video annotation startup called Omnisio that was acquired by YouTube, while Mars co-founded teleconferencing company Bitplay, which was bought by Jive Software. Ratner ended up joining Jive where the pair began plotting a new startup. “We asked ourselves what we wanted to do with the next 10 or 20 years of our lives. We both had kids and it changed our perspective. What’s meaningful that’s worth working on for a long time?”

They decided to fix a real problem while also addressing their privacy concerns. As he experimented with Internet of Things devices, Mars found every fridge and light bulb wanted you to download an app, set up a profile, enter your password and then hit a button to make something happen. He became convinced this couldn’t scale and we’d need a hands-free way to tell computers who we are. The idea for Proxy emerged. Mars wanted to know, “Can we create this universal signal that anything can pick up?”

Most offices already have infrastructure for badge-based RFID entry. The problem is that employees often forget their badges, waste time fumbling to scan them and don’t get additional value from the system elsewhere.

So rather than re-invent the wheel, Proxy integrates with existing access control systems at offices. It just replaces your cards with an app authorized to constantly emit a Bluetooth Low Energy signal with an encrypted identifier of your identity. The signal is picked up by readers that fit onto the existing fixtures. Employees can then just walk up to a door with their phone within about six feet of the sensor and the door pops open. Meanwhile, their bosses can define who can go where using the same software as before, but the user still owns their credentials.

“Data is valuable, but how does the end user benefit? How do we change all that value being stuck with these big tech companies and instead give it to the user?” Mars asks. “We need to make privacy a thing that’s not exploited.”

Mars believes now’s the time for Proxy because phone battery life is finally getting good enough that people aren’t constantly worried about running out of juice. Proxy’s Bluetooth Low Energy signal doesn’t suck up much, and geofencing can wake up the app in case it shuts down while on a long stint away from the office. Proxy has even considered putting inductive charging into its sensors so you could top up until your phone turns back on and you can unlock the door.

Opening office doors isn’t super exciting, though. What comes next is. Proxy is polishing its features that auto-reserve conference rooms when you walk inside, that sign you into your teleconferencing system when you approach the screen and that personalize workstations when you arrive. It’s also working on better office guest check-in to eliminate the annoying iPad sign-in process in the lobby. Next, Mars is eyeing “Your car, your home, all your devices. All these things are going to ask ‘can I sense you and do something useful for you?’ ”

After demoing at Y Combinator, thousands of companies reached out to Proxy, from hotel chains to corporate conglomerates to theme parks. Proxy charges for its hardware, plus a monthly subscription fee per reader. Employees are eager to ditch their keycards, so Proxy sees 90 percent adoption across all its deployments. Customers only churn if something breaks, and it hasn’t lost a customer in two years, Mars claims.

The status quo of keycards, competitors like Openpath and long-standing incumbents all typically only handle doors, while Proxy wants to build an omni-device identity system. Now Proxy has the cash to challenge them, thanks to the $13.6 million from Kleiner, Y Combinator, Coatue Management and strategic investor WeWork. In fact, Proxy now counts WeWork’s headquarters and Dropbox as clients. “With Proxywe can give our employees, contractors and visitors a seamless smartphone-enabled access experience they love, while actually bolstering security,” says Christopher Bauer, Dropbox’s physical security systems architect.

The cash will help answer the question of “How do we turn this into a protocol so we don’t have to build the other side for everyone?,” Mars explains. Proxy will build out SDKs that can be integrated into any device, like a smoke detector that could recognize which people are in the vicinity and report that to first responders. Mars thinks hotel rooms that learn your climate, wake-up call and housekeeping preferences would be a no-brainer. Amazon Go-style autonomous retail could also benefit from the tech.

When asked what keeps him up at night, Mars concludes that “the biggest thing that scares me is that this requires us to be the most trustworthy company on the planet. There is no ‘move fast, break things’ here. It’s ‘move fast, do it right, don’t screw it up.’ “

Jan
16
2019
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We Company CEO in hot water over being both a tenant and a landlord

The company formerly known as WeWork has come under scrutiny for potential conflict of interest issues regarding CEO Adam Neumann’s partial ownership of three properties where WeWork is (or will be) a tenant. TechCrunch has seen excerpts of the company’s prospectus for investors that details upwards of $100 million in total future rents WeWork will pay to properties owned, in part, by Adam Neumann.

In March 2018, The Real Deal reported that Neumann had purchased a 50 percent stake in 88 University Place alongside fashion designer Elie Tahari. That property was then leased by WeWork, which then leased space within the building to IBM.

Today, the WSJ is reporting that 88 University Place isn’t alone. Neumann also personally invested in properties in San Jose that are either currently leased to WeWork as a tenant or are earmarked for such a purpose. Unlike 88 University, where Neumann is a 50/50 owner with Tahari, the CEO of the We Company — as WeWork is now known — invested in the two San Jose properties as part of a real estate consortium and owns a smaller stake of an unspecified percentage.

These transactions were all disclosed in the company prospectus documents it filed as part of its $700 million bond sale in April 2018. According to the prospectus, WeWork’s total future rents on these properties (partially owned by Neumann) are $110.8 million, as of December 2017.

That doesn’t include the reported $65 million purchase of a Chelsea property by Neumann and partners, which is said to be earmarked for a new WeLive space built from the ground up. That, too, will be subject to rent payments from the We Company to run WeLive out of it.

This raises questions of whether there is a conflict of interest in Neumann being both the landlord and the tenant of properties through WeWork. The WSJ says that investors of the company are concerned that the CEO could personally benefit on rents or other terms with the company in these deals.

According to WeWork, however, the company has not been made aware of any issues by any of its investors about related party transactions or their disclosures. The company also said that the majority of the Board are independent of Adam and all of these transactions were approved.

A WeWork spokesperson also had this to say: “WeWork has a review process in place for related party transactions. Those transactions are reviewed and approved by the board, and they are disclosed to investors.”

As it stands now, The We Company is privately held and in the midst of a transition as it contemplates how to turn a substantial profit on its more than 400 property assets across the world. The company is taking a broad-stroke approach, serving tiny startups and massive corporate clients alike, while also offering co-living WeLive spaces to renters and building out the Powered By We platform to spread its bets.

The company is valued at a hefty $47 billion, even after a scaled back investment from SoftBank (which went from $16 billion to $2 billion). But as the We Company inches toward an IPO, we may start to see a call for tighter corporate governance and more scrutiny of potential conflicts of interest.

Dec
15
2018
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The limits of coworking

It feels like there’s a WeWork on every street nowadays. Take a walk through midtown Manhattan (please don’t actually) and it might even seem like there are more WeWorks than office buildings.

Consider this an ongoing discussion about Urban Tech, its intersection with regulation, issues of public service, and other complexities that people have full PHDs on. I’m just a bitter, born-and-bred New Yorker trying to figure out why I’ve been stuck in between subway stops for the last 15 minutes, so please reach out with your take on any of these thoughts: @Arman.Tabatabai@techcrunch.com.

Co-working has permeated cities around the world at an astronomical rate. The rise has been so remarkable that even the headline-dominating SoftBank seems willing to bet the success of its colossal Vision Fund on the shift continuing, having poured billions into WeWork – including a recent $4.4 billion top-up that saw the co-working king’s valuation spike to $45 billion.

And there are no signs of the trend slowing down. With growing frequency, new startups are popping up across cities looking to turn under-utilized brick-and-mortar or commercial space into low-cost co-working options.

It’s a strategy spreading through every type of business from retail – where companies like Workbar have helped retailers offer up portions of their stores – to more niche verticals like parking lots – where companies like Campsyte are transforming empty lots into spaces for outdoor co-working and corporate off-sites. Restaurants and bars might even prove most popular for co-working, with startups like Spacious and KettleSpace turning restaurants that are closed during the day into private co-working space during their off-hours.

Before you know it, a startup will be strapping an Aeron chair to the top of a telephone pole and calling it “WirelessWorking”.

But is there a limit to how far co-working can go? Are all of the storefronts, restaurants and open spaces that line city streets going to be filled with MacBooks, cappuccinos and Moleskine notebooks? That might be too tall a task, even for the movement taking over skyscrapers.

The co-working of everything

Photo: Vasyl Dolmatov / iStock via Getty Images

So why is everyone trying to turn your favorite neighborhood dinner spot into a part-time WeWork in the first place? Co-working offers a particularly compelling use case for under-utilized space.

First, co-working falls under the same general commercial zoning categories as most independent businesses and very little additional infrastructure – outside of a few extra power outlets and some decent WiFi – is required to turn a space into an effective replacement for the often crowded and distracting coffee shops used by price-sensitive, lean, remote, or nomadic workers that make up a growing portion of the workforce.

Thus, businesses can list their space at little-to-no cost, without having to deal with structural layout changes that are more likely to arise when dealing with pop-up solutions or event rentals.

On the supply side, these co-working networks don’t have to purchase leases or make capital improvements to convert each space, and so they’re able to offer more square footage per member at a much lower rate than traditional co-working spaces. Spacious, for example, charges a monthly membership fee of $99-$129 dollars for access to its network of vetted restaurants, which is cheap compared to a WeWork desk, which can cost anywhere from $300-$800 per month in New York City.

Customers realize more affordable co-working alternatives, while tight-margin businesses facing increasing rents for under-utilized property are able to pool resources into a network and access a completely new revenue stream at very little cost. The value proposition is proving to be seriously convincing in initial cities – Spacious told the New York Times, that so many restaurants were applying to join the network on their own volition that only five percent of total applicants were ultimately getting accepted.

Basically, the business model here checks a lot of the boxes for successful marketplaces: Acquisition and transaction friction is low for both customers and suppliers, with both seeing real value that didn’t exist previously. Unit economics seem strong, and vetting on both sides of the market creates trust and community. Finally, there’s an observable network effect whereby suppliers benefit from higher occupancy as more customers join the network, while customers benefit from added flexibility as more locations join the network.

… Or just the co-working of some things

Photo: Caiaimage / Robert Daly via Getty Images

So is this the way of the future? The strategy is really compelling, with a creative solution that offers tremendous value to businesses and workers in major cities. But concerns around the scalability of demand make it difficult to picture this phenomenon becoming ubiquitous across cities or something that reaches the scale of a WeWork or large conventional co-working player.

All these companies seem to be competing for a similar demographic, not only with one another, but also with coffee shops, free workspaces, and other flexible co-working options like Croissant, which provides members with access to unused desks and offices in traditional co-working spaces. Like Spacious and KettleSpace, the spaces on Croissant own the property leases and are already built for co-working, so Croissant can still offer comparatively attractive rates.

The offer seems most compelling for someone that is able to work without a stable location and without the amenities offered in traditional co-working or office spaces, and is also price sensitive enough where they would trade those benefits for a lower price. Yet at the same time, they can’t be too price sensitive, where they would prefer working out of free – or close to free – coffee shops instead of paying a monthly membership fee to avoid the frictions that can come with them.

And it seems unclear whether the problem or solution is as poignant outside of high-density cities – let alone outside of high-density areas of high-density cities.

Without density, is the competition for space or traffic in coffee shops and free workspaces still high enough where it’s worth paying a membership fee for? Would the desire for a private working environment, or for a working community, be enough to incentivize membership alone? And in less-dense and more-sprawl oriented cities, members could also face the risk of having to travel significant distances if space isn’t available in nearby locations.

While the emerging workforce is trending towards more remote, agile and nomadic workers that can do more with less, it’s less certain how many will actually fit the profile that opts out of both more costly but stable traditional workspaces, as well as potentially frustrating but free alternatives. And if the lack of density does prove to be an issue, how many of those workers will live in hyper-dense areas, especially if they are price-sensitive and can work and live anywhere?

To be clear, I’m not saying the companies won’t see significant growth – in fact, I think they will. But will the trend of monetizing unused space through co-working come to permeate cities everywhere and do so with meaningful occupancy? Maybe not. That said, there is still a sizable and growing demographic that need these solutions and the value proposition is significant in many major urban areas.

The companies are creating real value, creating more efficient use of wasted space, and fixing a supply-demand issue. And the cultural value of even modestly helping independent businesses keep the lights on seems to outweigh the cultural “damage” some may fear in turning them into part-time co-working spaces.

And lastly, some reading while in transit:

Nov
13
2018
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WeWork picks up ANOTHER $3B from SoftBank

WeWork has picked up another $3 billion in financing from SoftBank Corp, not to be confused with SoftBank Vision Fund. The deal comes in the form of a warrant, allowing SoftBank to pay $3 billion for the opportunity to buy shares before September 2019 at a price of $110 or higher, ultimately valuing WeWork at $42 billion minimum.

In August, SoftBank Corp invested $1 billion in WeWork in the form of a convertible note.

According to the Financial Times, SoftBank will pay WeWork $1.5 billion on January 15, 2019 and another $1.5 billion on April 15.

SoftBank is far and away WeWork’s biggest investor, with SoftBank Vision Fund having poured $4.4 billion into the company just last year.

The real estate play out of WeWork is just one facet of the company’s strategy.

More than physical land, WeWork wants to be the central connective tissue for work in general. The company often strikes deals with major service providers at “whole sale” prices by negotiating on behalf of its 300,000 members. Plus, WeWork has developed enterprise products for large corporations, such as Microsoft, who tend to sign longer, more lucrative leases. In fact, these types of deals make up 29 percent of WeWork’s revenue.

The biggest issue is whether or not WeWork can sustain its outrageous growth, which seems to have been the key to its soaring valuation. After all, WeWork hasn’t yet achieved profitability.

Can the vision become a reality? SoftBank seems willing to bet on it.

Oct
08
2018
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WeWork taps Lemonade to offer insurance to WeLive members

WeWork has partnered with Lemonade to provide renters insurance to WeLive members.

WeLive is the residential offering from WeWork, offering members a fully-furnished apartment, complete with amenities like housekeeping, mailroom, and on-site laundry, on a flexible rental schedule. In other words, bicoastal workers or generally nomadic individuals can rent a short-term living space without worrying about all the extras.

As part of that package, WeLive is now referring new and existing WeLive members to Lemonade for renters insurance.

WeLive currently has two locations — one in New York and one in D.C. — collectively representing more than 400 units. WeWork says that both units are nearly at capacity. The company has plans to open a third location in Seattle Washington by Spring 2020.

Lemonade, meanwhile, is an up-and-coming insurance startup that is rethinking the centuries-old industry. The company’s first big innovation was the digitization of getting insurance. The company uses a chatbot to lead prospective customers through the process in under a minute.

The second piece of Lemoande’s strategy is rooted in the business model. Unlike incumbent insurance providers, Lemonade takes its profit up-front, raking away a percentage of customers’ monthly payments. The rest, however, is set aside to fulfill claims. Whatever goes unclaimed at the end of the year is donated to the charity of each customer’s choice.

To date, Lemonade has raised a total of $180 million. WeWork, on the other hand, has raised just over $9 billion, with a reported valuation as high as $35 billion.

Of course, part of the reason for that lofty valuation is the fact that WeWork is a real estate behemoth, with Re/Code reporting that the company is Manhattan’s second biggest private office tenant. But beyond sheer square footage, WeWork has spent the past few years filling its arsenal with various service providers for its services store.

With 175,000 members (as of end of 2017, so that number is likely much higher now), WeWork has a considerable userbase with which it can negotiate deals with service providers, from enterprise software makers to… well, insurance providers.

Lemonade is likely just the beginning of WeWork’s stretch into developing a suite of services and partnerships for its residential members.

Mar
13
2018
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WeWork expands its Flatiron School education business to London with £1M in scholarships

WeWork — the co-working startup valued at $20 billion with some 200,000 members across 200 locations globally — is continuing with its strategy of expanding into a wide array of adjacent operations to grow its business. Today the company announced that it will be expanding the coding-focused Flatiron School abroad, starting in London this June.

Alongside this, it’s also launching a scholarship program, offering £1 million in fees to people from underrepresented groups in tech to enrol in Flatiron classes, working with existing local groups like AllBright, Code Bar and Women Who Code to spread the word.

This is the Flatiron School’s first move outside of the U.S. for its physical classes — it had already offered online courses internationally before this — and notably it is also WeWork’s first significant educational effort since acquiring the New York startup last October for an undisclosed sum.

Since acquiring Flatiron, WeWork’s chief growth officer Dave Fano — who himself joined WeWork when the company acquired his own startup, building infomation modelling firm Case, heralding the start of the company’s acquisition spree — said that the idea has been to let Flatiron run business as usual, offering a variety of online and in-person coding and related courses. That is now changing as WeWork puts the acquisition to work, so to speak.

Expanding the kinds of services that it offers in European markets specifically is an interesting move for WeWork. When it first opened for business here in London, for example, people hiring out desks in other people’s offices, or working out of dedicated co-working spaces, was already a standard practice.

“There was lots of co-working already, so there was no need to educate the market on it,” Fano said in an interview. Hence, adding in more services and offerings is a way to help differentiate WeWork from the rest of the productivity pack. Education sits alongside a number of other services that WeWork has been developing, from offering all-in, optimised office spaces (complete with the ever-present glass decanter of fruit-infused water in the kitchen) both for individuals and running then on behalf of other companies, through to event planning (by way of its Meetup acquisition), and likely more down the line.

On the other side, this move is also an indication of how Flatiron, which had raised a modest $14 million in funding in its five years of life before getting acquired, is using the acquisition by the well-capitalised WeWork to upsize and compete against the likes of General Assembly and others who have doubled down on international expansion to build out their coding education businesses.

Flatiron School’s London operation will be based out of Finsbury Pavement, one of WeWork’s multiple London locations, and it will kick off with two courses, one a full-time software engineering immersive course that will last 15 weeks; and the other a part-time front-end web developer course that will run 10 weeks.

There have been a lot of efforts, both private and public, to help raise tech literacy among the workforces of the world, as industries and economies hope to train people for the next generation of employment as more legacy roles and processes tip into obsolescence, and all signs point to a more digital, connected and technological future.

Not all of these have been home runs, though, with many programmes failing to connect the dots between learning new skills and then applying them in actual jobs. And of course there remains a big digital divide between those who are already socially or economically challenged ever getting access to either the training or the subsequent work opportunities.

The company claims to have a strong success track record for its educational program.

“In the US, Flatiron School has set the benchmark for programming education with its community-first learning platform, market-aligned open-source curriculum, and outcomes-focused approach to education,” claims Adam Enbar, Flatiron School’s co-founder and CEO. “Since 2012, Flatiron has maintained a 99 percent graduation rate for its Software Engineering Programs in NYC and more than 2,000 students have graduated from Flatiron School to date, across both the on-campus and online programs. With our new Flatiron London location, we’ll be able to give more people access to attain the skills they need to create their life’s work.”

Meanwhile, a spokesperson for the school said that it also has a 99 percent placement rate for those looking for jobs in NYC in the area of the immersive program, and 97 percent placement overall in software engineering, iOS development and the fellowship program.

It’s a small start, but offering £1 million in scholarships alongside the launch can offer at least a small boost in trying to fix that problem. And for WeWork, which has now raised $7.3 billion in funding — including backing from the seemingly bottomless coffers of Softbank’s Vision Fund — a $1 million scholarship fund is small change, so hopefully it prove to be successful and it might consider how it can dole out more.

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