Cushman Wakefield Presentation: Evolution of a Startup
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17-Oct-2014 -
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Transcript of Cushman Wakefield Presentation: Evolution of a Startup
The Evolution of a Startup
Monthly Costs:
>$15,000>$15,000
Co-working/Shared
First Office Headquarters National/International
500 - 3,000ft2
Number of Employees
Monthly Costs:
10-100 $75,000$75,0003,000 - 20,000ft2
Size of Space:
Number of Employees
Monthly Costs:
100-500 $500,000$500,000$500,000
20,000 - 100,000ft2Size of Space:
UP TO
Number of Employees
Monthly Costs:
500-10k >$500,000>$500,000
>100,000ft2Size of Space:Size of Space:
1-10Number of Employees
A startup is a unique specimen. From a co-working office and a flip-flop sporting founder, to international headquarters and a high-powered CEO, these high-growth, technology-oriented companies have an evolutionary pattern all their own.
1stage
3stage
4stage
2stage
Headcount Funding Stage CRE Decision Makers Office Type
1-10
10-100
100-500
C-Suite, Cofounders, Single Biz Dev, Small
team of Engineers
Coworking, Shared, or Own Office
Own Office
HQ, minimal multi market expansion,
usually by acquisition
HQ, large national/international
presence, talent acquisitions
C-Suites, Cofounders, HR person, office
manager
Facilities Director and team, CFO, less
involvement from CEO
COO, Facilities Director, Csuite still
involved
Series A-B
Owner, Angels
Series B-Eventure funding
Private or Public500-10k
500 - 3,000 ft2
3,000 - 20,000
20,000 - 100,000
>100,000
Getaround, Kiip, Udemy, AppsStores
Creative, OpenHigh density, 50-150sq per person
Mid to high density
More diversity in space, common
areas, 100-200 per RSF per person
150-200 per RSF per person, different divisions
have different densities, permanent and free
address, different offices specialize
Creative with limitations
Preserve some startup feel, less
creative
Building Amenities, Campus, Less
Startup and more Corporate
Betterworks, Thumbtack, Foursquare
Square, Dropbox, Etsy, Ngmoco
Facebook, Twitter, Linkedin, Salesforce
1stage
3stage
4stage
2stage
Startups in the Space Characteristics Size of Space Density
$300 - <$15,000
$15,000 - $75,000
Month to month or 1-2 year deals
None or minimal
Modest to create identity and the right
“look and feel”
Upfront costs for IT infrastructure, imrovments
to maintain brand and creativity, and tenant improvements shared
between tenant and landlord
Expensive to create best-in-class space
2-5 years
4-10 years
5-15 years, may consider purchasing
1stage
3stage
4stage
2stage
Terms Up Front Costs Monthly Costs
Up to $500,000
>$500,000
!
Keep costs low, but important to recruit
initial team, maintain startup feel but build
camaraderie
Flexibility, intimate community,
collaboration, focus, freedom
First bigger office, shorter term, find creative spaces, remain in core
markets/submarkets
Global presece, go where the talent is,
outsource, scale
May achieve startup characteristics, better idea of time to volume growth patterns and
annual headcound goals
Greater monthly budget, anticipating
growth, greater downfall if grow or
shrink too early/late
Time to Volume, Scale
Facilities department, national
and international expansion, lease
vs buy
Distraction, security, cost
Tough to time a scale, higher rental obligation relative to
funding, revenue
Term and Scalability are a challenge
Significant real estate expense, unavoidable corporate space, lost startup mentality and
real estate
1stage
3stage
4stage
2stage
Considerations Advantage Challenges