WeWork competitor Cowork|rs is looking to court outside investors to support its expansion both in New York and across the Northeast, founder Shlomo Silber told The Real Deal.
Silber and the company’s other top brass are pitching their co-working concept to developers, institutional investors and lenders with the hope of raising north of $20 million, he said.
Cowork|rs top brass hopes the funding will take the form of an extended line of credit, allowing the start-up to ink deals for targeted spaces at a measured pace as they become available.
“We don’t want to be forced to do stupid deals because we have a lot of money sitting in the bank,” said Silber’s colleague, company chairman Elie Deitsch.
The raise would mark the first time Cowork|rs has looked to outside capital to help grow the business, which has thus far been funded by friends and family-type investors, Silber said.
The company now has five locations across the city and recently signed on for 30,000 square feet in Bushwick, at 839 Broadway near the Myrtle Avenue subway stop, and for 40,000 square feet at 60 Broad Street.
Silber said the company is looking at prospective new offices in areas such as Washington D.C. and wants to start its expansion in areas close to New York.