Flexible-office startup Industrious is moving closer to an initial public offering despite the perils of the coronavirus, which led the company to slash 20 percent of its workforce in early April.
The Brooklyn-based firm has added real estate veteran Mary Hogan Preusse to its board of directors and has been interviewing investment banks ahead of a potential spring or summer IPO, according to Bloomberg. CEO and co-founder Jamie Hodari said the date could change, the outlet reported.
Preusse, who is Industrious’ first female board member, is on the board of and independent director for a handful of large real estate investment entities that include Digital Realty Trust, Kimco Realty and Vereit. She was previously managing director and co-head of Americas Real Estate at APG Asset Management, at Dutch pension fund.
Discussing Preusse’s appointment, Hodari said “investors represent one point of view, but the unfortunate consequence is that you end up with a lack of gender diversity and potentially miss out on a thoughtful, independent voice.”
Despite the pandemic’s impact on business, Hodari said he expects revenue to grow as much as 25 percent this year. Industrious cut 90 employees last month — 18 percent of its workforce — and furloughed another 64 employees. The company is in the process of bringing those furloughed workers back.
Hodari said he believes Industrious’ focus on private offices over open co-working spaces — from rivals like WeWork — puts it in a better position moving forward. He added the coronavirus has shifted demand to those private offices.
The company raised $80 million in a Series C funding round last year from investors that included Brookfield Properties, Fifth Wall Ventures and Riverwood Capital. [Bloomberg] — Dennis Lynch