Mindspace secured a funding of $72 million. The investment round is intended to support the continuation of the company’s growth and its further expansion in Europe, the United States and Israel. The round was led by Harel Insurance Investments and Financial Services Ltd., More Provident Funds, Arkin Holdings and existing investors. Existing investors include Yoav Harlap, Kobi Rogovin and Globalworth.

In the past year, Mindspace launched new branches in London, Tel Aviv, Philadelphia and a new hub and spoke location outside Tel Aviv, at Yakum. Mindspace serves a wide variety of companies; about 41% are large enterprises and corporations and 38% are small and medium-sized companies. The leading industry types of its customer base are technology companies, financial companies and service providers. Past and present customers include Microsoft, Samsung, Playtika, Taboola, Yahoo!, Expedia, GoPro, and more.

While most of the commercial real estate industry took a hit as a result of COVID, the flex market continued to grow. All forecasts predict the accelerated growth of the flex industry to reach a market share of more than 30% by 2030; the current market share of flex as part of commercial real estate is 5%. According to a recent study by CBRE, in two years 43% of occupiers will have 10-50% of their portfolio dedicated to flex. In addition, 17% of occupiers will have more than 50% of their portfolio dedicated to flex. Zakai said:

“Mindspace is experiencing an impressive growth momentum and high demand in all its locations,” says Dan Zakai, CEO and Co-founder of Mindspace. “We successfully faced the many challenges of COVID. Today, our locations are almost at full occupancy and the current investment led by Harel Insurance and More Provident Funds is intended to fulfill the rising demand in the market and to launch new locations in partnership with landlords worldwide. Mindspace isn’t just another real estate company that rents out offices, but rather offers a strong, strategic partnership to its customers and to landlords. When choosing their office environment, we found that our customers put a great emphasis on their experience: central location, unique design and service of the highest standard. We expect a continued accelerated growth in 2022, while creating a great added value for our many customers.”

Mindspace provides well designed offices, fully equipped kitchens and meeting rooms. Mindspace allows for flexibility, shorter term commitments and lower financial risk, which is a suitable solution in times of economic slowdown.

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