The document outlines Vishal Gupta's business model masterclass presentation. It discusses the evolution of coworking spaces, from early struggles faced by Regus to recent growth led by WeWork. It also examines emerging models that combine incubators, accelerators, coworking spaces, and investment funds into hybrid ecosystems. Several case studies are presented of corporates partnering with accelerators to foster innovation.

1. Business
Model
Masterclass
VISHAL
GUPTA
Co-­‐founder
and
CEO
New
Delhi,
10th
Sep
2016

2. PUTTING
THINGS
INTO
PERSPECTIVE
IntroducEon
1

3. My
Journey
2
Vishal
Gupta
Entrepreneur
|
Investor
|
Ex-­‐
Investment
Banker
|
Startups,
Technology
&
Coworking
MISSION:
To
make
entrepreneurship
and
invesEng
in
entrepreneurship
accessible
to
all
by
breaking
barriers
to
informaEon,
access
and
investment
Investment
Banker
Corporate
Business
leader
Investment
Manager,
Advisor,
Freelancer
2002
2012
2015
Full-­‐Hme
entrepreneur,
investor
and
connector
Hong
Kong
London
Property
Renewables
Tech

4. 2016:
Could
things
be
any
beVer
for
coworking?
How
WeWork
has
changed
the
game
for
everyone
3
5
mn
sq
O
$1.4
bn
raised
$16
bn
value
Source:
Crunchbase,
WSJ
reports

5. 2003:
When
things
were
not
so
good
How
Regus
went
bankrupt
4
• Economic
downturn
• Over-­‐supply
of
office
space
• Fixed
long
leases
in
US
• Rentals
agreed
at
peak
of
market
• Sharp
downturn
in
passing
rents
• Reliance
on
dotcom
and
startups
–
demand
fell
away
Dot-­‐com
bubble
burst
1989
–
1st
Regus
opens
in
Brussels
1990s
–
Rapid
growth
fuelled
by
startups
mushrooming
2000
–
Regus
IPO
2001
–
Expansion
across
Europe,
Americas,
Asia
2003
–
InternaEonal
business
operaEng
in
52countries
2003
–
Regus
files
for
Chapter
11
bankruptcy
for
its
US
operaHons,
sells
stake
in
UK
business
What
went
wrong?
How
they
changed?
• Corporate
restructuring
• Property
JVs,
profit
sharing
partnerships
with
landlords
• Shib
to
30-­‐40-­‐30
mix
(large
corp-­‐SME-­‐
startup)

6. Financing
a
coworking
space
5
Average
size
of
coworking
spaces
has
doubled
in
2
years
Need
to
find
new
avenues
for
capital,
(also
revenues)!
Source:
Deskmag
Global
coworking
survey
2016

7. WHERE
ARE
WE
HEADED
Emerging
global
business
models
and
case
studies
6

8. Towards
mulE-­‐accelerator
and
ecosystem
models
7
Incubators
GestaEon
focus
5-­‐15%
equity
Discounted
services
Equity-­‐based
rent
Accelerators
Investment
focus
3-­‐10%
equity
Structured
programme
Equity-­‐based
rent
Coworking
Community
focus
No
equity
Events
+
networking
Cash-­‐based
rent
Hybrid
Ecosystems
Industry
incubator
host
In-­‐house
accelerator
Investment
fund
Coworking
space
Corporate
offices

9. Corporate
and
startup
collaboraEon
8
• For
tech
startups
and
corporate
innovaEon
professionals
• Large
campus
-­‐
AVracEon
of
scale
• Curated
community
–
by
applicaEon
only
• Alumni
include
Uber,
SpoEfy,
Supercell
• For
Tech
startups
• Focus
on
funded
tech
startups
• Coworking
plus
growth
services
• For
corporates
• Industry
accelerator
programme
• Corporate
memberships
targeted
at
corporate
innovaEon
professionals
• Started
with
$20,000
and
30
desks
in
2011
• Now
7-­‐floor
campus
in
SF
• New
campus
opening
in
London
in
2017
with
1,500
capacity
• ObjecEve:
To
develop
Intrapreneurs
who
think
and
work
like
startups
• Week-­‐long
immersion
programme
at
SF
campus
with
25
Tata
CommunicaEons
execuEves
from
across
the
world
• Onsite
visits
to
local
tech
innovators
Case
study:
How
Rocketspace
worked
with
Tata
CommunicaHons

10. Corporate-­‐backed
accelerator
9
• Telefonica’s
startup
accelerator
• Access
to
Telefonica
business
development
network
and
contracts
• Programme
offering:
• 50,000
in
cash
+
50,000
in
services
• 7-­‐10%
equity
stake
• 8-­‐12
months
of
space
• 130
startups
over
4
years
• Corporate
acceleraEon
–
providing
insight
and
guidance
to
other
mulEnaEonal
coporates
looking
to
launch
their
own
acceleraEon
programmes
Wayra

11. Pushing
the
boundaries:
VC
+
IP
+
Incubator
10
• Europe’s
first
Chinese
capital-­‐backed
ecosystem
• 70,000
sq
b
/
800
capacity
coworking
space
in
prime
London
• Business
accelerator
programme
• Separate
IP
management
company
and
business
transfer
plarorm
• Cocoon
Ventures
–
InvesEng
in
tech
companies
with
potenEal
to
be
scaled
to
China
Cocoon
Networks

12. AcceleraEng
growth,
expanding
revenue
streams
11
• VC-­‐backed
accelerator
programme
• Founded
in
Paris
in
2013
• 3
pillar
approach:
• EducaEon
• Unfair
advantages
(deals)
• Access
to
capital
(VC
network)
• Up
to
5%
equity
stake
• Industry
and
stage
agnosEc
• Non-­‐cohort
approach,
400+
porrolio
companies
• AcEve
content
strategy
–
2.5
m
Youtube
views
• Expanding
across
Europe
The
Family
• Entrepreneur
school
–
Weekend
training
programmes
for
aspiring
entrepreneurs
• Startup
Studio
–
helping
big
companies
to
create
startups
Expanding
revenue
streams

13. Zero
equity
accelerator
12
• Non-­‐profit
startup
accelerator
and
compeEEon
• Focus
on
early
stage
entrepreneurs
• Zero
funding
and
zero
equity
stake
• ParEcipants
compete
for
a
prize
of
£500,000
at
the
end
of
each
programme
• 4
months
per
programme
• Free
office
space,
mentoring,
workshops
and
global
network
access
• Supported
by
corporate
sponsors
and
partnership
deals
Mass
Challenge

14. Corporate
backed
insEtuEonal
financing
13
24
STATE
mmunity
LENGTH
offices or
e
k out areas and
ates
RKING
kets.
en Town is an
• Market
Tech
acquired
cluster
of
adjoining
retail
markets
in
Camden
for
$650
million
• 16
acre
of
prime
real
estate
porrolio
in
Camden
Town
• Mar
2015
-­‐
Market
Tech
acquired
Interchange
building
for
£49
mn
• Oct
2015
–
Interchange
Triangle
13k
sq
b,
278
desks
• May
2016
–
Atrium
30k
sq
b,
650
desks
• 3rd
locaEon
Utopia
to
be
launched
• 2017
–
1500
desk,
music
coworking,
fashion
coworking
Developing
a
coworking
cluster
How
they
financed
it?
• $642
mn
capital
market
financing
over
6
months
• Dec
2014
–
IPO
to
raise
$156
mn
• Mar
2015
–
ConverEble
to
raise
$174.4
mn
• Jul
2015
–
Secondary
to
raise
$311
mn
• Debt
refinanced
with
10
year
facility
with
AIG
£900
mn

15. Crowdfunding
a
coworking
space
14
• Coworking
space
for
migrant
entrepreneurs
in
East
London
• 150
member
space
• Building
a
niche
community
• Migrant
business
accelerator
• Migrant
business
show
• PublicaEons
• The
community
will
also
finance
• Raised
£100k
via
crowdfunding
campaign
on
SEEDRS
• Offer
discounted
membership
as
incenEve
• Covers
fit-­‐out
and
iniEal
lease
cost
• Important
to
have
early
backers
BEFORE
you
launch
a
campaign
• Build
and
appeal
to
a
community
• Offer
a
reward
• Campaigns
with
tangible
product
to
sell
do
beVer
–
your
customers
also
become
your
financiers
• Co-­‐working
spaces
can
offer
long
term
discounted
membership
as
incenEve
How
to
run
a
crowdfunding
campaign

16. WHAT
IT
TAKES
TO
SUCCEED
Brainstorming
15

17. What
it
takes
to
succeed?
Themes:
Let’s
discuss
• Campuses
v/s
Mega-­‐centre
v/s
mulEple
smaller
centres
• City-­‐centre
v/s
suburban
locaEon
• Commercial
v/s
Industrial
buildings
• Equity
based
rent
v/s
cash
based
rent
• Parent
level
or
locaEon
based
financing
• How
to
solve
the
long
lease
–
short
rent
problem
• Crowdfunding
• Equity
v/s
debt
16

18. What
it
takes
to
succeed?
Defining
your
Golden
Circle
17
WHY
HOW
WHAT
1

19. What
it
takes
to
succeed?
Defining
your
Golden
Circle
18
MY
BUSINESS
WHY??
• XX
• X
HOW??
• XX
• X
WHAT??
• XX
• X
1

20. What
it
takes
to
succeed?
Standing
out
from
the
crowd:
Purple
Cow
19
2

21. What
it
takes
to
succeed?
Standing
out
from
the
crowd:
Purple
Cow
20
2
MY
BUSINESS
NOW
–
What
am
I
doing
differently?
• XX
• X
FUTURE
–
What
can
I
do
differently??
• XX
• X

22. What
it
takes
to
succeed?
Where
can
I
turn
to
for
finance:
21
3
White
Knight
Friends
&
Family
Angels
VC
Venture
equity
Venture
debt
PE
Banks
Pension
Fund
LOC
Warrants
Structured
credit
Property
JV
Corporate
partnership
Overseas
capital
M&A
HNI

23. What
it
takes
to
succeed?
Where
can
I
turn
to
for
finance:
22
3
MY
BUSINESS
Sources
of
finance
I
have
considered?
• XX
• X
Sources
of
finance
I
could
consider?
• XX
• X
White
Knight

24. Contact
details
23
Vishal Gupta
Co-founder, CEO
Founder
Tech
Startups
SocialMedia
London, United Kingdom
www.kabeela.life
vishal@kabeela.life
+44 (0) 7788 491 774
Investment
Fundraising
Community
@vishthink
Coworking