WeWork rival Knotel is now valued at $500M

Startup raised $70M in Newmark-led Series B, plans to double in size

New York /
Apr.April 10, 2018 12:20 PM

Barry Gosin, Amol Sarva and Alex Sapir (Credit: Getty Images and Jhila Farzaneh for The Real Deal)

Knotel closed a $70 million in a Series B funding round on Tuesday, with plans to expand rapidly and muster a serious challenge to industry leader WeWork.

The flexible office space startup led by Amol Sarva has now raised $100 million between two seed rounds, and is valued at $500 million, according to research firm Pitchbook.

Knotel, which in the past two years has leased more than 1.1 million square feet in New York, San Francisco and London, said the new funding will allow the company to double in size.

Knotel’s latest funding round was led by Newmark Knight Frank and the Sapir Organization, with participation from the Wolfson Group, the Moinian Group and Wainbridge Capital.

Sarva, who also co-founder of Virgin Mobile USA, was embroiled in a public feud with WeWork last year, accusing the company of corporate espionage. In response, he parked a school bus in front of WeWork’s headquarters with a sign that read “graduate from co-working” — a reference, Sarva said, to the company’s perceived frat culture.

The company’s $25 million Series A round was supported by Bloomberg Beta, Invest AG, Observer Capital, Rocket Internet, and 500 Startups.

Knotel targets small-to-mid-sized companies with flexible leases. It recently announced plans to launch a blockchain-based online office listing data platform called KnotelKoin, with aims to take down another billion-dollar behemoth, CoStar.


Related Articles

arrow_forward_ios
Eric Gordon
Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Big Tech locations in NYC
MAP: Here’s a look at all the Big Tech locations in NYC
MAP: Here’s a look at all the Big Tech locations in NYC
What will proptech look like in 2019 and beyond?
What will proptech look like in 2019 and beyond?
What will proptech look like in 2019 and beyond?
SoftBank founder Masayoshi Son, Fortress Investment Group principal Peter Briger (Wikipedia, Long Arc Capital, Getty)
Fortress on chopping block as owner SoftBank bleeds
Fortress on chopping block as owner SoftBank bleeds
From left: Howard Hughes CEO David O’Reilly and Jean-Georges Vongerichten in front of the Tin Building at the Seaport (Photo Illustration by Steven Dilakian with Getty Images, Howard Hughes and Twitter/arcofnyc)
Howard Hughes buys stake in Jean-Georges
Howard Hughes buys stake in Jean-Georges
From left: Savitt Partners Bob Savitt and Tory Burch with 11 West 19th Street
Tory Burch staying put at Savitt’s 11 West 19th Street
Tory Burch staying put at Savitt’s 11 West 19th Street
Ruschmeyer’s Hotel (Facebook, Getty)
Montauk hotspot Ruschmeyer’s for sale after losing liquor license
Montauk hotspot Ruschmeyer’s for sale after losing liquor license
The Chetrit Group's Joseph Chetrit and Park West Village on the Upper West Side (Getty Images, Google Maps)
Chetrit, Stellar land $365M refi for UWS luxury apartment complex
Chetrit, Stellar land $365M refi for UWS luxury apartment complex
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...