Coworking space Fastfive has picked up a 12 billion won (USD $10.5m) investment from TS Investment, Quantum Equity Partners and ID Ventures.
Over the past five years there has been a massive increase in the number of coworking spaces in Korea, especially in Seoul, thanks to the rising number of startups. The funding for Fastfive comes as the office space industry, valued at over a trillion won, now enters a period of slow growth. Despite this, Fastfive has seen good progress, with six offices located around Seoul.
For every office that Fastfive has opened, spaces have filled up fast, with a mere 1% rate of empty offices over a period of two years. As the number of innovative and small companies filled with young talent increases, places like Fastfive have turned into more than just shared office space, and also help build communities for the current and upcoming generation of entrepreneurs.
Fastfive’s offices host tech, media, marketing and online commerce companies, with individuals in their 20s and 30s making up 35% and 36% respectively. It’s not all startups though, with medium-sized business and Korean branches for global companies also using space.
The six office locations are positioned around Seoul’s major business areas such as Seocho, Gangnam and Samseong, and are used by around 500 companies. Fastfive opened its first office in April 2015, with more of a focus on customer service than other shared spaces. Inside, members can work and network at ‘café style’ open desks, or make use of private suites.
To increase synergy between the many teams it supports, networking parties and seminars are held, with major companies such as Microsoft and Amazon also offering services to companies.
The latest funding will be used to increase Fastfive’s number of offices further, including a 3,300m2 office in the Gangnam area. All up, the company expects to open seven more coworking spaces this year, and expand into all areas of Seoul in 2018.
