D.C. Coworking Space Picks Up $3.4M Funding Round
Cove, a D.C. coworking space, has doubled its valuation in its latest funding round.
In D.C., coworking space Cove is set to expand. After initially raising $2.8M in Series A funding last May, the company has doubled its valuation and put together a $3.4M funding round by several investors. In addition to hiring a high-profile executive from DC-based LivingSocial, Cove plans to expand their operations and open new locations.
The company currently runs 11 coworking spaces across Washington, D.C. and Boston, the two cities it serves. Cove’s ambitions don’t stop there: Adam Segal, CEO, stated in an interview that he plans to raise more money in the fall. If the next round is a success, the company will be prepared to scale to new cities in 2017. No word yet on which cities Cove is targeting, unfortunately.
Cove stands out from the crowd by offering plans that cover just a handful of hours per month. For example, members have the option to pay just $59/month for 1.5hr access every work day. This level of flexibility makes the space a good pick for freelancers, especially if you only need an office to meet with clients. Part-time plans are also useful for workers who already have full-time employment, and who want a temporary office space to work on a side project after hours. The space even appeals to students who want a change of pace from the dorms or the college library.
Each Cove location offers something special. The Boston spaces partner with local craft coffee roaster Barismo, and one of the D.C. locations is setting up a system to attract corporate clients. The idea is for corporations to allow employees to take remote days at coworking spaces instead of at home. Big companies renting space at coworking spaces is part of a growing trend, and Cove wants to cater to this audience.
Cove is one of many new coworking spaces that’s vying for the competitive U.S. market, but its level of venture funding is impressive for the industry. Many coworking spaces seek government grants, and only a handful aim to expand nationwide. Cove is poised to be one of the big players in the industry if it can successfully scale its operations.