October 1, 2023

If you’ve run a high-growth company, you know that office space decisions are a nightmare. You are forced to anchor your growth assumption in cement–literally–for a typical lease term of seven years.
Most companies try to take down enough space to JUST BARELY accommodate their anticipated employee base in the seventh year. And unfortunately, most every outcome is bad for the company:
I’ve seen this play out across many of the companies that I support. For example, in the 11 years I’ve been a Pinterest board member, they must have signed as many new leases. But it just doesn’t make sense to sign a traditional lease when you’re doubling (or tripling!) your team size every year. And while shared coworking can be great, it’s not an option for the many companies that want or need private, dedicated space to build their product and culture.
This problem has only gotten worse with COVID and hybrid work. How do you plan for THAT?! Capacity utilization at most offices plummeted during COVID and has been slow to recover. Many employees have moved/are moving to new cities. Another pile of employees has stayed, but only want to come to the office a day or two a week. Do you really want to bet on what work is going to look like over the next seven years?
Enter Codi: an “all-in-one” platform that allows companies to spin up private, flexible office spaces. Codi’s goal is to make office space as easy and as plug-and-play as any other part of a company’s outsourced tech stack. The Codi value prop for companies is robust:
Today, we’re excited to announce we’re leading Codi’s Series A round. When we met cofounder and CEO Christelle Rohaut, we were blown away by her vision to reimagine urban work. Christelle has a Master’s degree in City and Urban Planning from Berkeley, and has spent years thinking about how to design and configure spaces that “work” for teams. Christelle and co-founder Dave Schuman hope to make Codi their life’s work!
Codi is live in the Bay Area, New York, and Austin, with more cities coming soon. Over the past year, the company has grown gross revenue 22x and 10x their number of clients, now serving dozens of businesses of all sizes–from early stage startups to segments of large enterprises. Many of these customers have already extended their time with Codi, or expanded to bigger spaces or additional cities with Codi as their teams have grown.
Codi makes sense for landlords, too, who have clamored to list their spaces on the platform. With commercial space vacancies still near record levels, access to quality, vetted tenants is more important than ever. Because Codi rentals are shorter term, landlords charge more per month than they would on a traditional lease (the companies pay a modest premium for the enhanced flexibility). The experience is turnkey for landlords as well, as Codi handles customer service and outfits the space.
A new era of work is here, and a new group of generational companies will rise to fill the needs teams are now facing. We believe Codi is leading the way for commercial office space. If you’re looking for office space, request one on www.codi.com–and if they’re not in your market yet, they will be soon!
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; a16z has not reviewed such advertisements and does not endorse any advertising content contained therein.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments for which the issuer has not provided permission for a16z to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.


About Author

Leave a Reply