Steve wrote: "investors tend to want quantitative studies" True that. At the VC conference I produced yesterday, I had a chance to run coworking (and particularly the Uptime model) past a few investors in our network. While they were interested and even excited about its potential, they were all agreed that this is probably a debt- financing model rather than an equity play. Assuming the cashflow is there, it makes more sense to finance startup and expansion costs with short-term debt.
This is relevant to this discussion because the potential increase in demand for coworking combined with the soft market for serviced premises offers an opportunity (howbeit temporary) to rapidly proliferate this new workplace model. A multimedia production contractor I know at Google informs me that they are asking contractors to work fewer hours, and he's looking for some outside assignments, working on them at Uptime. Just anecdotal, I know, but encouraging, anyway. --Ax On Oct 21, 10:29 pm, "Mike Schinkel" <[EMAIL PROTECTED]> wrote: > Steve: > > Thanks for the reply and the links. If you do come back with some more > quantitative work and wouldn't mind sharing it, it will be greatly > appreciated! > > -Mike > > -----Original Message----- > From: [email protected] [mailto:[EMAIL PROTECTED] On > > Behalf Of [EMAIL PROTECTED] > Sent: Tuesday, October 21, 2008 2:41 PM > To: Coworking > Subject: [Coworking] Re: Impact of Financial Crisis on Coworking > > We've done general trend work on coworking, but investors tend to want > quantitative studies and we haven't done anything in that area. I also > haven't seen anything quantitative on coworking - it is a bit early in the > trend cycle for quant work. We have a research report that briefly mentions > coworking called the Changing Face of Entrepreneurship (you can find it > onwww.emergentresearch.com), but it won't help much with investors. > > There are a number of academic studies showing that self-employment and > micro-business formation increases during economic downturns. One of the > more relevant ones is called Entrepreneurship in Silicon Valley During the > Boom and Bust. It is on the SBA site and can be found > at:http://www.sba.gov/advo/research/rs296tot.pdf > > It has footnotes pointing to a bunch of other academic studies that show > that self employment and small business formation tends to move up in down > economic periods. > > Sorry I can't be of more help. > > Steve > > On Oct 19, 3:09 am, "Mike Schinkel" <[EMAIL PROTECTED]> wrote: > > Steve: > > > Your comments are interesting. Do you have any of your research you > > can share with those of us who need to convince financial backers to > > support our efforts to launch co-working in our respective cities? > > > Thanks in advance. > > > -Mike Schinkel > > Organizer: Atlanta Web Entrepreneurshttp://atlanta-web.org > > > -----Original Message----- > > From: [email protected] [mailto:[EMAIL PROTECTED] > > On > > > Behalf Of [EMAIL PROTECTED] > > Sent: Saturday, October 18, 2008 12:38 PM > > To: Coworking > > Subject: [Coworking] Impact of Financial Crisis on Coworking > > > Hi: > > > My name is Steve King and I'm a long time lurker on this site:). I'm > > a researcher focused on small business and I'm curious how the current > > economic turbulence is impacting coworking. I'm also interested in > > how the you think the recession is going to impact coworking and the > > coworking movement over the next year. > > > In past recessions, small business formation increased due to declines > > in traditional employment opportunities. And during and after the > > 2001 recession the number of single person businesses grew much faster > > than before. The growth rate also slowed as the economy improved. > > > So what do you think?? Will recession increase the demand for > > coworking space? Will more people choose or be forced to go out on > > their own?? Will you get more corporate traction as companies reduce > their office spaces?? > > Other impacts?? > > > Thanks for the help. > > > Stevewww.emergentresearch.com-Hide quoted text - > > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Coworking" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/coworking?hl=en -~----------~----~----~----~------~----~------~--~---
