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§ Private Profile · New York City, NY, USA
Flexible office provider offering custom-designed headquarters as a service for midsize growth companies, focused on flexible leases.
Knotel, a New York City-based provider, offered flexible, custom-designed headquarters as a service for growing midsize companies. The firm partnered with landlords on profit-sharing deals to create and sublet bespoke office environments, managing design, furnishing, and maintenance for clients such as Stash, HotelTonight, and The Body Shop. Knotel expanded to over 1 million square feet across 60 locations, reaching a $1.6 billion valuation in March 2020, and had 150 employees as of 2018. Despite being on track for $100 million revenue by late 2020, its Q2 2020 revenue slipped 20% to $59 million, leading to its bankruptcy filing in February 2021. Investors included Newmark Knight Frank, The Sapir Organization, and RRE Ventures, with Newmark acquiring assets for $70 million post-bankruptcy. Knotel was founded in 2015 by Amol Sarva and Edward Shenderovich.
Knotel has raised $955.0M across 5 funding rounds.
Knotel has raised $955.0M in total across 5 funding rounds.
Knotel has raised $955.0M in total across 5 funding rounds.
Knotel's investors include Wafra, Bloomberg Beta, Mercuria, Mori Trust, Newmark Knight Frank, Norwest Venture Partners, Rocket Internet, Hanaco Ventures, H.I.G. Capital, SoftBank Capital, Spark Capital, ITOCHU Corporation.
Knotel has raised $955.0M across 5 funding rounds. Most recently, it raised $400.0M Other Equity in August 2019.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Aug 21, 2019 | $400M Venture Round | Wafra | Bloomberg Beta, Mercuria, Mori Trust, Newmark Knight Frank, Norwest Venture Partners, Rocket Internet | Announced |
| Aug 1, 2019 | $400M Series C | Wafra | Hanaco Ventures, H.I.G. Capital, Norwest Venture Partners, SoftBank Capital, Spark Capital, Bloomberg Beta, ITOCHU Corporation, Mercuria, Mori Trust, Newmark Knight Frank, Rocket Internet | Announced |
| Oct 1, 2018 | $60M Series B | Jeff Crowe | Hanaco Ventures, H.I.G. Capital, Norwest Venture Partners, SoftBank Capital, Spark Capital, Bloomberg Beta, Newmark Knight Frank | Announced |
| Apr 10, 2018 | $70M Series B | Barry Gosin, The Sapir Organization | Moinian Group, The Wolfson Group, Wainbridge Capital | Announced |
| Feb 1, 2017 | $25M Series A | — | 500 Startups, ROY Bahat, Invest AG, Rocket Internet | Announced |
Knotel is a PropTech company providing customized, flexible workspace solutions for established companies and growing startups, eliminating the burdens of traditional long-term leases. It operates as the world's leading flexible workspace platform, matching, tailoring, and managing spaces across major cities like New York, San Francisco, London, and Berlin, with over 5 million square feet in 200+ locations on four continents[1][2]. Knotel serves midsize enterprises and scaling businesses by handling site selection, design, build-out, and management through an in-house team of architects, interior designers, and workplace strategists, allowing clients to focus on core operations[2][3]. Its growth includes managing 800+ employees worldwide from its New York HQ, demonstrating strong momentum in the flexible office market[4].
Knotel was co-founded in 2015 or 2016 by Amol Sarva and Edward Shenderovich, both serial entrepreneurs with deep startup experience[2][3][4]. Sarva, a veteran who co-founded Virgin Mobile USA, and Shenderovich identified the gap after managing their own offices: companies needed agility in headquarters real estate without lease headaches[3]. The idea emerged from recognizing that while businesses evolve quickly, traditional offices do not, leading them to create "agile headquarters" via profit-sharing partnerships with landlords rather than fixed leases[1][3]. Early traction came from launching 15 New York locations, targeting real companies over freelancers, and expanding globally while protecting clients from real estate complexities like custom builds or compliance[3].
Knotel rides the flexible workspace trend accelerated by remote/hybrid work shifts post-pandemic, capitalizing on demand for agile offices amid rising PropTech adoption[1][2][4]. Timing aligns with market forces like high commercial real estate costs, startup scaling needs, and economic uncertainty, where traditional leases hinder growth—Knotel solves this by transforming rigid spaces into adaptable ones[1][3]. It influences the ecosystem by pioneering "agile HQ" for midsize firms, bridging coworking gaps for enterprises, and expanding PropTech tools that integrate design, tech, and operations across continents[2][3][4].
Knotel is poised for continued expansion in hybrid work and PropTech, potentially deepening tech integrations like AI-driven space matching or global site growth beyond current 200+ locations. Trends like sustainability mandates and economic volatility will favor its no-lease model, evolving its influence toward dominant flexible HQ provider for tech/scaling firms. As the pioneer cracking "leases-for-real-companies," Knotel remains essential for businesses prioritizing agility over real estate burdens[1][3].