From education and food delivery to telemedicine and financial transactions, technology plays a role in almost everything we do. It isn’t surprising to note that entrepreneurs are leaning towards establishing tech startups.
Of the 72,993 recognized startups established in 2022, 4,500 were based on emerging technology such as robotics, artificial intelligence, the internet of things, etc. And, many of them have become well-known success stories that started from coworking spaces.
When it comes to India’s unicorns, tech-driven companies are in the spotlight. Their founders had the right idea but also, it is the environment that the team works in that has influenced their growth. Let’s look at some of the coworking benefits for tech startups and how they fuel growth.
Source: Statista
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5 Amazing coworking benefits for tech startup Companies
- Increased Investment Budget
- Access To Robust Facilities
- Knowledge Spillovers
- Talent Acquisition
- Expanded Market Reach
1. Increased Investment Budget
The higher a startup’s operational costs, the lower the budget available for investments in product development. Shifting to a coworking space helps drastically lower operational costs by reducing rents payable as well as infrastructure costs. As per some estimates companies can lower their office operations expenses by 18-22% merely by moving to a coworking space.
All the basics required to set up an office space for tech startups such as furniture, internet, kitchenettes, air-conditioning systems, meeting & conference rooms, cafe’ etc. are already in place and will not cost you anything extra to use. Low prices were identified as the key selling point for 32% of survey respondents.
Source: Coworking Statistics
This is money that can be directed towards getting specialized equipment, product research and innovation, expert consultations, etc.
2. Access To Robust Facilities
A survey found that having access to basic office infrastructure was the main reason for 57% of respondents to choose a coworking space.
Source: Statista
Along with desks and chairs, tech startups also require infrastructure such as high-speed Wi-Fi, printers, scanners, etc. These are typically seen as standard features of a coworking space. Some coworking spaces targeting tech startups also provide access to expensive specialized equipment such as 3D printers at a nominal cost. This empowers the team to work on innovative ideas and experimentation without locking in too much financial capital. In turn, this gives the enterprise leeway to invest in scaling up the business.
3. Knowledge Spillovers
Researchers studying the exchange of ideas between tech startups found that ‘knowledge spillovers’ were highest when dissimilar startups worked within a 20m radius of each other. This distance allows socialization and idea-sharing.
A simple conversation could lead to one startup using technology tested and adopted by the other to build applications quickly without going through a technology testing phase. Thus, the time to launch reduces.
Sharing a work environment with other entrepreneurs and experienced professionals offers more opportunities for brainstorming and getting immediate feedback. Many coworking space providers organize events such as investor Q&A sessions, product demo days, skill-building seminars, hackathons, etc. for purposeful networking.
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4. Talent Acquisition
Moving to a coworking space influences talent acquisition in many ways. Firstly, it makes it easier to meet and interact with others.
Source: Whattobecome
Along with people working with startups, you’ll also meet freelancers, remote workers from enterprises of all sizes, digital nomads and so on in a coworking space environment. So, when it’s time to hire someone, you can spread the word more easily or may even find your ideal candidate working on the same floor.
Secondly, since leasing desks in a coworking space is more cost effective as compared to renting an independent office, you have a larger budget for salaries. Thus, startups are able to attract more experienced candidates.
Thirdly, coworking spaces are designed to be a professional working environment with aesthetics, ergonomics and layout given comparable importance. This makes a good first impression on candidates coming in for interviews and projects the startup as a good place to work. Thus coworking helps attract and manage talent for tech startups.
5. Expanded Market Reach
You may have an excellent product but for your company to be successful, it must reach the market. Startups in coworking spaces have found that along with exchanging ideas on product development, they can also help each other reach a wider audience.
There are a number of cross marketing opportunities to be taken advantage of. For example, new products can be mentioned in emailers with links to the startup website. Or, new launches can be bundled with proven successes. As the market expands, so does the company’s profitability and in turn, company value.
💡 Are you looking for Coworking space in Gurgaon, Noida or Delhi?. We are just a call away.
Call now: 08999 828282
Finding The Right Coworking Space For Your Tech Startup
There are a number of coworking spaces wooing tech startups. However, they are not equal in terms of service or quality. Ideally, visit the workspace before signing your lease. Along with the facilities provided, see who else is working in the space and how the working culture matches your company culture.
If you are in Delhi, Noida or Gurgaon, The Office Pass (TOP) is the ideal space for your team. Designed as vibrant spaces with open plan seating to facilitate collaborations as well as dedicated desks to allow people to focus on their tasks, these coworking spaces boost productivity and help startups grow. To know more, reach out to us at 08999 828282.
