Investing in Codi | Andreessen Horowitz

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For those who’ve run a high-growth firm, you already know that workplace area selections are a nightmare. You’re compelled to anchor your development assumption in cement–actually–for a typical lease time period of seven years.

Most corporations attempt to take down sufficient area to JUST BARELY accommodate their anticipated worker base within the seventh yr. And sadly, most each end result is dangerous for the corporate:

  • In case your development assumption is simply too excessive, you’ll under-utilize the area all through the complete lease time period–consuming valuable capital within the course of.
  • In case your development assumption is simply too low, you outgrow the area earlier than the lease is up and both want to interrupt the lease (and pay a penalty) or take down a second lease (splitting up your worker base).
  • For those who occur to be very fortunate and your development assumption is correct, you continue to under-utilize the area badly within the early years.

I’ve seen this play out throughout most of the corporations that I assist. For instance, within the 11 years I’ve been a Pinterest board member, they should have signed as many new leases. Nevertheless it simply doesn’t make sense to signal a standard lease once you’re doubling (or tripling!) your crew dimension yearly. And whereas shared coworking might be nice, it’s not an possibility for the various corporations that need or want non-public, devoted area to construct their product and tradition.

This downside has solely gotten worse with COVID and hybrid work. How do you intend for THAT?! Capability utilization at most workplaces plummeted throughout COVID and has been gradual to get well. Many staff have moved/are transferring to new cities. One other pile of staff has stayed, however solely need to come to the workplace a day or two every week. Do you actually need to guess on what work goes to appear like over the following seven years?

Enter Codi: an “all-in-one” platform that permits corporations to spin up non-public, versatile workplace areas. Codi’s aim is to make workplace area as simple and as plug-and-play as every other a part of an organization’s outsourced tech stack. The Codi worth prop for corporations is strong:

  • Versatile: You may e-book a Codi area for a month, a couple of years, or something in between–and select whether or not you lease it full time or just some days every week.
  • Turnkey: The areas come well furnished–personalized to an organization’s wants and requests – and outfitted with every thing from WiFi to espresso.
  • Any neighborhood: Codi has workplace area all all through the cities they serve, so you could have nice odds of discovering area in your neighborhood of alternative.

Right this moment, we’re excited to announce we’re main Codi’s Sequence A spherical. After we met cofounder and CEO Christelle Rohaut, we had been blown away by her imaginative and prescient to reimagine city work. Christelle has a Grasp’s diploma in Metropolis and City Planning from Berkeley, and has spent years eager about learn how to design and configure areas that “work” for groups. Christelle and co-founder Dave Schuman hope to make Codi their life’s work!

Codi is dwell within the Bay Space, New York, and Austin, with extra cities coming quickly. Over the previous yr, the corporate has grown gross income 22x and 10x their variety of purchasers, now serving dozens of companies of all sizes–from early stage startups to segments of huge enterprises. Many of those clients have already prolonged their time with Codi, or expanded to larger areas or further cities with Codi as their groups have grown.

Codi is sensible for landlords, too, who’ve clamored to record their areas on the platform. With business area vacancies nonetheless close to report ranges, entry to high quality, vetted tenants is extra essential than ever. As a result of Codi leases are shorter time period, landlords cost extra monthly than they’d on a standard lease (the businesses pay a modest premium for the improved flexibility). The expertise is turnkey for landlords as effectively, as Codi handles customer support and outfits the area.

A brand new period of labor is right here, and a brand new group of generational corporations will rise to fill the wants groups are actually going through. We imagine Codi is main the way in which for business workplace area. For those who’re on the lookout for workplace area, request one on www.codi.com–and in the event that they’re not in your market but, they are going to be quickly!

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