Tag: growth

Aticco is one of those interesting coworking growth stories which tells us that there is place for independent big players aside of WeWork or Spaces. Aticco is a born and raised coworking firm in Barcelona; a 3 years old brand that has managed to open 6 coworking spaces, around 25.000 m2 all together and without VC investment. We have interviewed Franz Pallerés, the Co-founder and Chief Operations Officer of Aticco, to find out more about its story of success and his future plans. Franz Pallerés will also be speaking at Coworking Europe 2019 in Warsaw on November 13-15th.

Hi. Can you tell us about the story behind Aticco ? What is your positioning?

Aticco was born precisely in another coworking space. I was the space manager and my two partners were clients there. Having both points of view, we realized that if we focused on customer service and excellence in the management needed, it was an improved model. From there we began to imagine the space we wanted to create. We found an incredible attic in downtown Barcelona and we found it to be the perfect place to start this adventure. The support and confidence of the first coworkers were essential for us to move forward. Three years later we look around and we are very proud of what we have built. Aticco are not just working areas. Together we have generated an innovative ecosystem where we collaborate, learn, and grow.

The support and confidence of the first coworkers were essential for us to move forward.

We’ve read that the Coworking offering in Barcelona grew by 23% just in the last 6 months of 2019. How do you explain the boom? 

Barcelona has established itself as a business and investment hub in Europe. The arrival in the city of large multinationals proves it. It has everything a company (startups and corporates) wants: qualified employees, investors, fertility for growth, quality of life (climate, gastronomy, environment…), and good connections with the rest of the world. As a result, the demand grew in the last year and forecasts indicate that it will continue to do so. And on the other hand, coworking spaces are perfect to house these companies. Faced with the traditional real estate offer, we offer flexibility of growth without permanent conditions and take care of all efforts, design training activities, organize meetings between entrepreneurs and mentors, celebrate events to have fun and connect with other people… And all that helps companies focus 100% on their project, have more opportunities for growth because of the connections that are created and strengthen the bond of their workers and their motivation. That is why there is an increasing demand for flexible spaces in the market.

Are you accommodating startups and freelancers, mainly, or other tenants profiles?

We have always believed that the combination of companies of different sizes and structures benefits fertility and environmental connections. The diversity of business models increases opportunities for collaboration. For example, freelancers or small businesses exchange services with each other, and learn the financing and investment processes of startups; early startups see the development of those that are already in a high growth phase and can sense the following challenges that they will have to face; large structures need to inspire and retain the talent of their team and they get it through contact with other profiles that complement them.

In recent months we have had an increase in large corporations that are committed to entering flexible spaces. And it is not just for the ease of management and the options to continue growing without rigid conditions. But because of the enrichment that gives them at the level of human resources and brand value, being within an innovative ecosystem.

Freelancers or small businesses exchange services with each other, and learn the financing and investment processes of startups; early startups see the development of those that are already in a high growth phase.

You grew from 1.000 m2 a few year ago up to 25.000 m2 and six buildings today. Did you simply benefit of the strengthening of the market demand or has it to do with a home-designed approach you had?

When we started, our initial plan was 1,000 m2 and we dreamed of expanding to 2,000 m2 after a year. But the levels of occupation that we achieved within a few months indicated that there was a high demand and that the community also liked what we offered and the atmosphere of closeness and family there was. Our coworkers have been the best ambassadors of the brand. This added to the fact that the big operators had not yet arrived in the city, made us enjoy a certain advantage. And we bet on the constant growth although that made us assume many risks. It has been a mix of being in the right place, at the right time, offering quality service and constantly evolving according to market needs.

Our coworkers have been the best ambassadors of the brand.

You compete nowadays at the same levels in terms of size and number of members as the big international brands like WeWork or Spaces, who have locations in Barcelona. Your thoughts on that?

In the current context of Barcelona, that statement is a reality. Knowing that in terms of financing we are infinitely smaller, on a daily basis we compete with them in all fields. Both in target, as in the search for new locations, the commercialization of leads, the processes of HR… The resources we have are smaller but the end result, after much effort and dedication, is that we fight to convince the same audience and offer the same level of demand in our spaces. We have to be creative and resourceful to get it. And I think that makes us value more every lead that transforms into a new coworker. We are David vs. Goliath of the flexible spaces of Barcelona!

The resources we have are smaller. We have to be creative and resourceful to get it.

How about the funding. You didn’t raise VC money nor have you a big international company behind you, do you?

3 years ago we raised 110 k of friends and family, and 1 year ago we raised 700 k in a small round led by different family offices in Barcelona, we don’t have VC money nor we are backed/owned by a real state company, we had profits since we opened 3 years ago and it helped us grow organically and maintaining control of our company.

Would you say that independent brands can play on the same ground as the big international coworking names in any city?

I personally think that the big brands are slower and therein lies the opportunity of the smaller operators. For example we have seen it in negotiations with buildings or potential customers. Our decision making is faster and allows us to take better advantage of the situation. Another important point is flexibility. Big brands work almost like franchises, where the same model that has worked in other cities is incorporated. That on the one hand is good, because the whole system is very automated, but on the other hand, changes or adaptation to the environment is worse.

The local operator always has an advantage because of the knowledge of the environment. But you have to know how to use it. And finally I think that the commitment of the workers, loyalty and motivation with the project, are easier to maintain in not so systematized structures.

Our decision making is faster and allows us to take better advantage of the situation. Another important point is flexibility.

What about your plans for the rest of Spain?

We plan to open very soon our flagship in Madrid, it’s scheduled for Q1, 2020.

Do you have any projects regarding the opening of new locations in Europe?

Yes, we had Lisbon in our scope for a while, so soon you will find us there. We are still looking for new places where our community can grow. Smart cities committed to change, welcoming innovation hubs that will challenge the future.

Marouan Aoudia is an Algerian national, born and educated in the US. During 10 years, he worked in the corporate world before shifting towards the entrepreneurial world, end of 2015, armed with a long list of projects among which to open a coworking space in Algeria : The Address.

Hello Marouan. Could you introduce yourself as well as The Address project?

I was introduced to coworking for the first time on April 2015 during a visit to the US, and I immediately thought about seeing this concept into Algeria.  Along with my strategic partners Majda and Chouaib, we worked on the concept, activities, and the general branding of the space.  The Address was born on Feb 2016 as the 1^st coworking space in the country.  It is located in the capital, Algiers, and in area that has multiple options of public transportation for ease of reach.  The Address is approximately 250 m2 big in surface.  Our vision is to create an environment that embraces the notion of connection, collaboration, and creation among the members. We welcomed members from diverse sectors and backgrounds, some just starting out in their entrepreneurial journey and others are established professionals that require a work space while in Algiers.  This mix of backgrounds and experience level is what makes The Address a unique space I believe.

What are the reasons Coworking can thrive in Algeria, according to you?

As for any service proposition, to be successful, it needs first and foremost to solve a real problem that exists. Coworking solves an issue that many entrepreneurs and independent professionals are facing in Algeria : the lack of affordable space where they can work, a place to receive potential clients, an opportunity to connect and network with peers, ability to establish their commercial license without important capital requirements. Coworking put simply tackled all these problematic and it allowed many people to take their 1^st step towards establishing their projects with just a small capital, establish a commercial license and be connected with fellow members as support system.

According to you, coworking can help emerging countries such as Algeria to diversify their economy. Can you elaborate ?

Currently Algeria is tapping into its foreign reserves just to maintain economic stability after witnessing the massive drop in oil prices, a resource that historically served as the main economic contributor.  Faced with the situation on hand, we have no choice but to diversity and develop other sectors of the economy.  As previously stated, Coworking in Algeria plays an important role in creating an environment that supports the development of a startup scene and the entrepreneurial landscape in general.  We are seeing a new stream of startups being founded at Coworking spaces that eventually graduate to standalone businesses as they scale up their operations. The numbers are out there, in many economies around the world SMEs contributes the heavily in to nation’s GDP figures and employment sector.  Again, Coworking is the 1^st step towards that journey, the starting point in a chain of business development that will see a small startup become an valuable economic contributor.     

Coworking is the 1st step towards that journey, the starting point in a chain of business development that will see a small startup become an valuable economic contributor.

Coworking communities can become connection hubs between entrepreneurs from emerging and developed economies. How can we achieve that better?

Definitely, coworking spaces from across regions and continents once connected can serve as the ambassador’s of the world in their respective countries.  Once this has been achieved, we can start working on an array of projects whether its digital in nature or anything else that is both relevant and of added value.  Coworking owners have the capacity to engage the members, influencers, and local community towards a common initiative.  It is worth noting that idea aside the most challenging part in these sorts of grand scale initiatives is the quality of execution and sustainability. On the profitability side, Coworking spaces can again collectively seek funding from international organizations in return of the value that these projects can bring home.

What can we say about the Algerian digital ecosystem and how coworking can help?

The digital ecosystem in Algeria is lagging behind even when looking at it from the perspective of North Africa region.  It is hindered by two main issues, the low speed and at times unreliable internet connection and the lack of structured e-payment system.  So we have an infrastructure issue more than anything. 

There is a lot of interest among youth for everything related to digital world and Coworking spaces are serving as platforms connecting the community members by organizing seminars, events (SW: cfr Algeria Startup Altitude, for instance), workshops, and trainings related to it.   As the infrastructural issues are resolved, Coworking will be playing more of an active role in initiating   

Does the coworking working model speaks also to SME’s or bigger companies, or is too early in the country?

At The Address we already have a number of SME clients.  These are clients where the HQ are based outside of Algiers but still have strong client base in the city.  We offer them special corporate packages that would allow them the use the space when visiting and more importantly we offered them virtual office service by serving their client base administratively on commercial transactions.   We also host corporate evening events at the space for themes that speaks to youth and entrepreneurship.

The Address is settled in a “Commercial Centre”. Why is this location appropriate for a coworking space would you say ?

We are located in hybrid building that has a mall, commercial offices, governmental agencies, and residential studios.  The center offers many advantages.  First, the center has 1000 free parking spaces, a luxury that you will not find elsewhere in the city where parking is a major issue.  Second, the center offer security 24/7 allowing us the run evening events without any fear for safety.  Third, our clients and Coworking members appreciate the services that the commercial center has to offer in terms of food court, catering, dry cleaner, gym, among other things that makes life just a bit easier.

In Europe or in the US, we hear more and more about “dying” shopping malls. Can coworking save “commercial centres” ?

A dying garden needs to be rejuvenated.  The way to do it is to remove the dead plants and inject new seeds that can break ground and foster.  Dying infrastructure is no different; if malls are dying they can be converted to a mix of commercial offices, innovation hubs, art galleries,…the economic cycle will always see concepts that will seize to exit in the expense of new fresh initiatives, our role is to adjust accordingly.       

What are your main challenges and hopes?

As a Coworking space owner the challenge is to continue to promote the concept and build awareness, get better traction and create greater demand to sustain operations.  A year and half into our existence, we have taken great strides towards that goal and have adopted well to meet the demand of our community and corporate clients.

At a macro level, I hope we will see more initiatives in Algeria from private sector that goes towards the development of our young human resources.  Emerging countries have abundance of talented youth that are never given the proper mentoring, resources, and opportunity to excel.  More often than not, they opt to travel to Europe, US, and there they develop into influential figures and contributors to their adopted nation.  We need start to start paving a road for their success while they are here.     

It’s no surprise that there are now several active coworking spaces in the Canary Islands. The combination of scenic beauty and the relaxed and warm local culture is not only perfect for a vacation but attracts more and more digital nomads and freelance professionals. One of the most international spaces is CoworkingC, based in Las Palmas. The small yet vibrant space aims to build an international community while also changing work culture in the region.

CEO and local, Nacho Rodriguez is working to create positive change in the community via CoworkingC as well as strengthening the position of the Canary Islands as an international hotspot.

Hi, Nacho. Can you please tell us a bit about your history with coworking and also about CWC’s history?

CoworkingC  started two years ago, first as an office space to host a spin-off of the IT department from one of our companies. Eventually, it turned out to become an international workspace, which currently hosts local entrepreneurs and digital nomads that are working remotely from Las Palmas. We pivoted heavily during the process and keep learning and trying to improve every day.

You are very involved in the coworking community. As the moment has developed substantially over the years, what observations have you made? 

In my opinion, the coworking market is starting to mature. After some years of substantial growth, it is now starting to become more sustainable and at the same time it keeps growing. It’s remarkable, the fact that some administrations start regulating their public offer in order to avoid unfair competition with the private sector, which has been a problem in the past.

What are some of the most exciting and novel directions you see coworking moving?

I am very enthusiastic about all the transcendent changes that go along with the coworking movement. Remote Work, Distributed companies, Coliving, and Digital Nomads are all changing the way we understand work, collaboration, and human interaction.

From these observations do you see coworking as a viable option for the standard office space, or do you think it’s better to have coworking remain as an alternative option, in order to preserve more community-oriented models?

In my opinion, coworking must be part of the DNA of a company or business. But, I don’t see this work philosophy in many sectors just yet. While it is rapidly evolving as more and more people realize the benefits of coworking, some sectors will most likely remain traditional.

We all know the Canary Islands are beautiful and are also rapidly attracting digital nomads. What percentage of your community is comprised of nomadic workers?

70% of our community are digtal nomads that arrive attracted by the weather and beauty of the Canary Islands. They also decide to stay longer when they realize that we have much more to offer than just the beach and sunshine.

How do you accommodate their needs and help them integrate?

The official language at CWC is English, although we encourage our visitors to learn Spanish, which helps long-term visitors to fully integrate with that local community.

We also recently activated a coliving center to help facilitate our visitors integrate, and also help in finding them affordable housing in an efficient and flexible way. We also organize Meetups and events to accelerate the generation of value within our community.

What impact does a more internationalized community have on the locals, and is coworking responsible for this international wave?

Our market is fairly small, and opportunities for locals scarce. Having an international community allows locals to have a broader perspective on the global market and also gives them the chance to access new opportunities, while also helping them to improve their English skills.

Currently, some of our local members are working abroad with other international coworkers, taking advantage of the Erasmus+ programs and enjoying a great personal experience.

You describe your space as intimate and personal.

Intimacy allows us to cover the personal needs of our visitors, offering a much better value proposition than bigger networks. As long as we manage to provide effective networking and opportunities to our members, we believe we provide a better service than larger spaces .

Our maximum capacity is 25 people. We believe that there are many advantages of having a small space. Although we do understand that smaller in size makes is more difficult to become profitable. Currently, we are planning to expand, not in size, but rather in the number of spaces across the Canary Islands. We are also thinking to expand internationally as well.