Pipeline Workspaces, one of Miami's fist workspaces, has sold a minority stake valuing the company’s brand and business model at approximately $15 million. The investment comes from a member of Pipeline Brickell, the brand’s first location at Miami’s Brickell Financial District.
With a scalable and risk-controlled business model that creates high cash returns on equity to fund growth and distributions, management is driving a national expansion of Pipeline Workspaces that should result in additional institutional investment and a valuation exceeding $100 million within the next two years.
Gordon G. Pratt, founder and CEO of Fund Management Group (FMG), a private holding and investment company, has been a member of Pipeline Brickell for two years. Pipeline’s shared workspace concept caters to a diverse community of creative entrepreneurs, tech start-ups, experienced professionals and small teams from large corporations. A third location is under construction in Coral Gables, Florida.
“Many people have approached us to invest and we chose an experienced professional investor who has beta tested our concept over the last two years,” said Todd Oretsky, Co-Founder of Pipeline Workspaces. “From the design of our spaces to the diversity of our membership, the model creates an atmosphere that sparks synergy and produces cross-pollination, since Pipeline member businesses represent a variety of industries at different stages of the business cycle all working under one roof,”
With demand for shared office space rising in markets across the US, Pipeline is currently exploring expansion in Atlanta, Charlotte, Denver, and Dallas, in addition to other locations in South Florida. The increasing number of locations offers members an added value, as it can help them penetrate and expand their businesses and networks in new markets.
“Across our current locations, we already are seeing members take advantage of the opportunity to work out of multiple offices and network in new cities, which makes expansion of their businesses into new markets much more seamless,” said Philippe Houdard, Co-Founder of Pipeline Workspaces. “Imagine having a network with one degree of separation from many industries in multiple cities.”
This news comes as more coworking spaces continue to pop up in Miami, including MADE at the Citadel and Building.Co for the city's growing entrepreneurial community.