Startup based in Seattle The riveting machineThe company, which wanted to establish a national network of women-oriented cooperation spaces, is closing all nine locations due to the ongoing uncertainty caused by the COVID-19 pandemic. The 3-year-old startup will focus on its online community, which it launched earlier this year.
In a statement to GeekWire on Friday, founder and CEO Amy Nelson identified the health and safety of Riverter employees and members as a top priority during the ongoing health crisis.
"Given these security concerns and unforeseen circumstances, we were forced to make the extremely difficult decision to close our coworking activities," said Nelson. "We are extremely grateful to our Riveter family for helping us build an incredible personal community across the country. We will shift our focus to strengthening our 30,000-strong online community and will continue to be a resource for everyone working women. "
Nelson shared a similarly worded message in a blog post published on the company's website (see below). We contacted Nelson for more details and will update this story as we learn more.
The move will affect collaboration in the Seattle region, where The Riveter has three locations, as well as Austin, Dallas, Denver, Los Angeles, Minneapolis and Portland, Ore.
The shutdown occurs when questions arise about the future of the physical office. Within a few weeks, the coronavirus pandemic turned a somewhat theoretical debate about the pros and cons of remote working into a global, real experiment. 50 percent of the Facebook workforce could permanently switch to remote work in the next 5 to 10 years, CEO Mark Zuckerburg told employees last week.
The dramatic shift is bad news for cooperating companies like The Riveter and industrial giant WeWork. that also fights Companies are rethinking their return to the office for health and safety reasons.
Founded in 2017, The Riveter differs from other co-working spaces in terms of convenience, programming and other benefits for members targeting female professionals. It describes itself as "a modern union of working women and allies".
After completing a $ 15 million Series A investment round in December 2018, the ambitious goal was set to reach 100 locations by 2022. Less than half of the company's revenue came from cooperating rental fees, 80% of non-Nelson members said GeekWire earlier this year before launching its digital community.
Riveter members pay $ 19 a month to be a "Riveter ally," and previous fees of $ 199 to $ 400 plus gave access to the shared workspace. Further discounts are travel discounts, Event ticketsand access to a network.
The Riveter held his first The Riveter summit: women build the future Last November event in New York City.
It was named Startup of the Year at the 2019 GeekWire Awards and was one of three companies in Seattle CNBC's list of the 100 most promising startups to see last year.
The company cut a small number of employees last January.
WeWork's valuation dropped from $ 47 billion to $ 8 billion at the end of last year after investors breached the financials in a canceled IPO and financial metrics redundancies. The fighting raised natural questions about the future of other cooperating models.
In an interview with GeekWire last November, Nelson said that the impact of WeWork had no negative impact on The Riveter, which had almost tripled sales year over year.
The Riveter's investors include Alpha Edison; Madrona Venture Group; WestRiver Group; Backstage capital; The helmet; Gingerbread capital; Women's venture capital funds; and several people.
Nelson, a former corporate lawyer, co-founded the company in 2017 Kim Peltolawho left The Riveter shortly after launch.
Here is Nelson's full blog post:
I hope you are all safe and well. I am writing today to share news about The Riveter's future.
The safety and health of our employees and members came first during this devastating pandemic. Given these security concerns and unforeseen circumstances, we were forced to make the extremely difficult decision to close our coworking activities.
The Riveter will shift its focus to strengthening our online community – 30,000 and growing – and will continue to be a resource for all working women in this unprecedented time.
Our mission has always been to create changes for working women. We launched our digital community in February, and then the world changed. The need for support increased and our mission became more urgent. The Riveter online community has shared their stories, resources and experiences, learned new skills and participated in virtual events. We invite you Join us there if you haven't already
I am so thankful that you believe in The Riveter. We look forward to continuing to support and support working women everywhere. I look forward to seeing you online and soon crossing our paths in real life again.
Amy Nelson, founder and CEO of The Riveter