Neuehouse, shared office operator announced it raising $25 million in venture funding from an undisclosed institutional investor. Earlier the company raised Seres B round of funding that was led by Miami-based real estate investment firm Aeterna Capital as with Karl Finegan, a managing principal at the firm.
Founded in 2011 at New York, Neuehouse offers inspiring shared workplaces where solo entrepreneurs and small teams rent space to work along with other creative professionals. James O’Reilly, managing director of NeueHouse said, “NeueHouse was established to address some broad secular trends influencing the way we live and work, and everything in between. It is a private work collective, which is intensely experiential – using great design, intuitive hospitality, community and culture to support creative entrepreneurs.”
Though the business model of Neuehouse make look similar to that of co-working space WeWork, it is not the same. WeWork operates in 39 locations in 16 cities with the valuation of more than $10 billion and functions on the concept of ‘co-working.’ Whereas Neuhouse calls itself a ‘private workspace collective’ has just one location. Another key factor that differentiates Neuehouse from WeWork is the aesthetics. Neuehouse with its 1000 members carries the ambience of a contemporary boutique hotel, handpicks its members from a waiting list and it much more expensive. It is more like Soho House with desks rather than swimming pools. It charges open office areas at $1300. A Neuehouse representative said, “This isn’t WeWork. We are not the backpack brigade.” A desk at one of WeWork’s New York offices costs arnd $350 per month.
The only thing common to both the companies is that they both attract the same segment of ‘digital nomads,’ who do not have a line of separation between the personal and professional life of theirs.
With the new flow of money, Neuehouse co-founder Joshua Abram said the company is already in works to open its second location, Neuehouse Hollywood in Los Angeles this summer and London office soon next year. The company is planning to expand its services and operations globally.