A new coworking and accelerator hybrid for startups raised $1 million this week as it works to expand.
Workbox, which opened at 420 N. Wabash Ave. last year, raised the funding from a host of undisclosed angel investors.
Co-founded by John Wallace, who has a background in finance, Workbox advertises itself as a coworking space and accelerator program for early-stage tech startups.
Like other coworking offices, tenants can choose shared or private work space, and receive coffee, private phone booths and conference room access. But in addition to those typical coworking offerings, members also receive mentoring, networking opportunities and access to investors.
“There wasn’t any good model out there that was providing startups access to capital, strategic services, mentorship and a community of other founders,” Wallace said. “If we focused on a subset of the coworking population and provided them access to resources that would help them be successful, we wouldn’t have to try to compete on stuff that is easily replicated.”
Workbox currently has more than 100 individual members across 30 startups and 20 venture fund partners. The new funding will help Workbox open a second location in Chicago in 2021.
Workbox memberships range anywhere from $200-$800 per month, depending on how much space and how many services companies want access to. Workbox also offers a remote membership for $5,500 per year, which doesn't come with physical workspace in the office, but still gives members access to the mentoring, networking and capital offerings.
Workbox says it can’t guarantee that its capital partners will make an investment in members, but it does guarantee that they’ll get a meeting.
“A warm introduction is super important,” Wallace said.
Workbox capital partners include Chicago Ventures, Cultivation Capital and Hyde Park Venture Partners.
As the Covid-19 pandemic has kept many workers at home, the office real estate and coworking industries have suffered as more companies terminate leases or downsize office spaces. However, Wallace said Workbox’s business has remained steady throughout the pandemic, a triumph he attributes to the other services its membership provides besides physical office space.
“The goal was to continue to engage our community and make sure that we were still providing resources to our companies in a time when they probably needed us even more,” Wallace said. “We had very little turnover. Leaving us is leaving your professional network, not just the physical office.”
