A Chicago coworking startup is gearing up for growth as workers eye more flexible office options as the latest wave of the Covid-19 pandemic subsides.
Workbox announced that it has raised $3.5 million in seed funding led by Hillsview Capital. The coworking space has raised $7 million since launching in 2019.
Workbox operates as a hybrid coworking space and accelerator for startups. It offers the typical coworking amenities like shared and private work space, coffee, phone booths and conference room access. But its members also receive mentoring, networking opportunities and access to investors through the Workbox network.
The company currently operates four coworking spaces in Chicago, with locations in the Gold Coast, River North, West Loop and off the Magnificent Mile on Wabash Ave.
Workbox plans to use the funding for a national expansion, with locations outside of Chicago coming soon as the company aims to become the "premium national flex office operator for early and growth-stage companies,” co-founder and CEO John Wallace said in a statement.
Interest in coworking space has surged following a challenging 2020. Demand for flexible office space increased 40% from Q3 to Q4 last year, an increase of more than 50% from Q1 2021 and 26% from Q1 2020, according to data from Denver-based coworking-office marketplace Upsuite Corp. The trend suggests coworking companies are back to, or exceeding, pre-pandemic levels.
Workbox is betting the workers of the future want more than just a desk from their coworking space. The company says it has a network of more than 40 angel investors, venture capital firms and other lenders, along with access to additional business support to help entrepreneurs build their companies.
