Co-working spaces taking China by storm
Competition among China’s co-working market is intensifying, with global leading brand WeWork expanding fast into the market, for instance, while local rivals including UrWork and KrSpace continue to develop apace, backed by deep-pocketed venture capitalists
Grant Horsfield says he had a heart attack in early 2009, after Chinese bank ICBC recalled a loan from his bank account for 30 million yuan (US$4.58 million), as the latter received an order from the country’s authorities to reduce debt following the global financial crisis.
It was two years after the South African entrepreneur had started his business in China. To avoid running out of cash, he was forced to turn to loan sharks for the same amount, who charged him whopping annual interest of 28 per cent.
Eight years on, and now in his early 40s, Horsfield’s hospitality and resort business, the “Naked Resort”, survives and is now one of the most lucrative in China, and he’s poised to close a Series C financing round to expand his latest venture – co-working spaces.
Key strategic investors include those from China’s leading property developers and financial institutions, and the injection of cash is likely to value the company – branded “Naked Hub” – as high as US$1 billion, said Horsfield. He couldn’t give an exact figure as the fundraising process is yet to close.
I have visited many state-owned commercial buildings, with lights on, air conditioning on, but whole floors empty … such a waste of energy and resources
“It is never easy doing business in China … But people still have trust (for genuinely good products) … and never think the market is so stupid you can cheat them …” he said.