There has been a monumental shift in our perception of an ideal workspace — especially after the Covid-19 pandemic hit. A lot of employees realized they can work from just about anywhere. So it isn't the rigid timings or the cubicles that they missed while working from home.
73% of employees missed the sense of community that the offices offered and the connections they built while being in close proximity with their colleagues.
While coworking spaces were already witnessing rapid growth before, their growth trajectory and purpose has drastically changed post the pandemic. And as hybrid work models take over, many businesses are opting for flexible and community-oriented coworking spaces.
There has never been more emphasis on being in an environment that encourages networking and connections. The demand for coworking spaces grew by 41% from the first quarter of 2021 to the second quarter.
It is also estimated that the global coworking industry is expected to reach $13.03 billion in 2025 at a CAGR of 12%. It shows that coworking spaces aren’t just a haven for freelancers and startups anymore. They are also appealing to established businesses and new-age ventures that dramatically shape the future of society.
The coworking industry is growing aggressively. So it's time for you to open your doors and welcome these new-age ventures. Let’s take a look at some of the top ones you should consider welcoming into your coworking space.
1. EdTech
The digital evolution in Edtech didn’t just come out of anywhere. All these years it was picking up pace. It just didn’t get enough attention because of resistance to adopting a modern way of learning.
Covid-19 brought about a lot of changes in perspectives. Existing Edtech firms ramped up their scale, and new firms spurred up to fill in the demand for online learning. This surge in the demand has surely captured the interests of investors as they’re extensively capitalizing on virtual learning opportunities.
For example, an Indian-based Edtech startup, upGrad has taken up 1,000 seats in IndiQube’s coworking centers in Bengaluru. It is one of the largest coworking space transactions this year. Moreover, the Edtech startup has also received significant funding from venture capitalists because of its growth potential.
Edtech firms are on a hiring spree, calling for the need of ready office spaces where they can quickly get their teams on board. A lot of Edtech companies are also opting for coworking spaces because of their work culture. It is appealing to millennials who are increasingly demanding flexible work schedules post-pandemic.
2. eCommerce
The eCommerce business is thriving. Even before the compulsion to transit to a digital business framework, eCommerce was growing at an unprecedented rate. This makes it an ideal industry to consider for your coworking space.
A lot of companies that provide eCommerce SEO services find the office costs and maintenance overbearing. Apart from the regular costs, eCommerce companies have to deal with a lot more expenses such as shipping, refunds, website maintenance, operations, logistics, and eCommerce order fulfillment. To alleviate some of these costs, many eCommerce businesses rely on tools like a shipping refund service to streamline refunds and manage shipping expenses more efficiently.
They’re constantly looking for affordable alternatives and avoid their extortionate rental costs. As a result, they’re turning towards coworking spaces where they can avail everything they get at a private office and more.
eCommerce is also constantly evolving. It needs to have a collaborative and networking environment that allows employees to seek advice from other professionals. Coworking spaces make it easy for them to connect with different industry personnel and even outsource certain tasks under the same roof.
3. Artificial Intelligence & Machine Learning
We cannot talk about the new age without mentioning Artificial Intelligence (AI). Gartner predicts that the global AI software market will reach $62.5 billion in 2022 — an increase of 21.3% from 2021.
Coworking spaces are hubs for innovation. A lot of established tech and AI startups like Artificial Labs, and StatusToday are leveraging coworking spaces to foster creativity, create tools like ai voice generator and connect with other ambitious companies and individuals.
Tech and AI companies also need an environment that allows them to work in solidarity when needed and connect to meet and exchange ideas. Coworking spaces provide them with the best of both worlds, resulting in higher productivity.
AI firms are bringing about a revolution that can go a long way. If you target them, they can focus their attention on scaling and hiring top talent instead of worrying about rents and maintenance.
4. Healthcare Technology
The past few years have shown us how fragile and vulnerable our healthcare infrastructure actually is. Healthcare is overburdened. It has to ensure safe and accessible care, discover new treatments methods, and provide solutions to challenging medical problems.
Healthtech is one of the fastest-growing industries and is projected to register a CAGR of 13.3% from 2021 to 2030.
But despite the progress the healthcare industry is making in terms of technology and innovation, it is also in dire need of resources. Targeting healthcare tech for your coworking space can help these companies to provide an environment where their teammates can collaborate and carry out their vital missions.
Healthcare dictates a lot of our future as a result of which it is getting a lot of attention from investors and governments. A coworking space isn’t just a place for these health tech startups but also a place where you can have key stakeholders under one roof such as entrepreneurs, established companies and strategic partners, service providers, and associations.
5. FoodTech
The food industry operations have changed dramatically with the introduction of technology and mobile-based applications. The industry is capitalizing on the consumer demand for convenience, and product freshness. Even with the raging pandemic, food tech grew, more so because it falls into the category of an essential service.
Food tech companies are significantly filling gaps in instant food deliveries—be it groceries or home-cooked food, or restaurant deliveries. The industry is also riding on the success of concepts of cloud kitchen, and agricultural technology.
Looking at their potential, the venture capitalists are putting their best foot forward. They’re actively investing in these companies to help them increase their productivity and grow to new heights. Likewise, coworking spaces are also aiming to be a part of this growth.
For example, the leading coworking space provider WeWork launched a food-centric co-working space and innovation lab for food technology startups in May 2020. The coworking space is specially dedicated to food innovators working in AI, robotics, kitchen appliances, supply chain visibility, agricultural tech, distribution software, consumer goods, and hospitality.
6. Content & Digital Marketing
The Content and Digital Marketing industry is enjoying immense popularity and growth. Thanks to the growing need for having an appealing online presence and improving SEO performance, content marketing firms are experiencing a stage of high demand across various industries.
Like all the other names on this list, marketing companies also strive for an innovative workspace where there is a seamless exchange of ideas and thoughts. The marketing industry is driven by networking. Marketing professionals are constantly looking for the opportunity to strike up a conversation and build valuable professional relationships which they can easily do in coworking spaces.
More than everything else, marketing companies also need to feel the right energy while working. It’s important for these professionals to share their office space with like-minded individuals and entrepreneurs for their creativity to shine.
Having a digital marketing company in your coworking space will also allow other companies under your space to have easy access to marketing professionals.
7. FinTech
The collaboration of finance and technology has birthed many new-age ventures. Digital payments, cryptocurrencies, and blockchain technologies are taking the world by storm. From 2020 to 2021, the investments in cryptocurrencies and blockchain tech witnessed a 450% jump!
Fintechs are also rigorously seeking cross-sector collaboration and industry-based opportunities and shifting to coworking spaces. Traditionally, the finance sector has preferred having a personalized place. One of the major reasons is that they can enforce the necessary data security measures, pass the compliance tests and keep finances tracked due to trade surveillance.
However, coworking spaces are taking precautions in fulfilling the security demands of the fintech industry to make their offices a safe space to work and collaborate. While FinTech has a promising future, you need to remember that confidentiality and security are two major factors that are holding back fintech companies to work in shared spaces.
Yes, they can surely practice the basic security measures of cloud storage, clean-desk policy, never leaving a screen unattended and unlocked. But to target them, you’ll have some responsibilities too to provide a security infrastructure that gives them the confidence to join you.
Wrapping up
Although these sectors are not related to each other, they all function on the same principles of decentralized decision making, fostering innovation, and ensuring flexibility that promotes a higher work-life balance. They can avail all of these and more in a coworking space that aligns with their objectives.
Some of the top names that we hear today made their starts at coworking spaces. It is because the owners saw the potential and understood their revolutionary nature. If you want to nurture the startup ecosystem, you need to give opportunities to ventures that have the ability to make a difference and strive for success under your roof.
The article was written by Nicholas Woodward, the Country Manager at PACK & SEND, a leading and respected brand in eCommerce, logistics, and freight delivery solutions. With over 15 years of experience in the logistics, eCommerce, retail, and franchise industries. Nicholas has thought leadership and expertise across strategic planning, leadership, eCommerce, B2C logistics, and organisational performance & growth. Connect with Nicholas on LinkedIn.
