Coliving: Raising Funds Globally
Raising funding of any sort given the current climate of the world is no easy task, but coliving companies are showing their resiliency now more than ever. Various coliving companies across the globe have secured major financing deals since the start of the Covid-19 pandemic and show no signs of slowing down. What makes the coliving model so attractive to high-profile investors despite an uncertain global future? See below why HOME is in good company when it comes to the next generation of housing solutions:
Node Raises $350 Million in September 2020
Node is one of the European trailblazers behind ‘Coliving 2.0’, a concept combining co-living and furnished apartment living. Much like HOME’s mission, Node works to create a sense of all-inclusive, built-in community while also providing a private space that fosters a sense of security. Their most recent major investment comes from a JV partnership with independent alternative investment manager Intriva Capital. The numbers Node has secured are especially intriguing given the current global residential real estate market downturn driven by the pandemic, which is providing rarely seen opportunities for investors looking to get a good deal.
The Collective Raises $70 Million in October 2020
In 2019, DTZ Investors created the world’s first institutional co-living investment vehicle, Coliv Fund. The fund aims to raise total equity commitments of up to £650 million and to acquire, or forward fund, between six and ten co-living assets in London, with a target gross asset value of £1 billion across the life of the fund. On October 5th, 2020 the Coliv Fund secured a 310 room scheme in Earlsfield, a suburb of London. Aiming to “provide high quality, flexible and socially responsible housing in London” the Coliv Fund, in partnership with The Collective Earlsfield shows the premium on sustainable housing of the future.
Common Raises $50 Million in September 2020
Common, one of the leading residential coliving brands in the United States, secured $50 million in a Series D funding round led by Kinnevik on September 24th, 2020. With additional participation from existing investors, including Norwest Venture Partners, 8VC, and Maveron, Common has over 17,500 units under construction in over 26 cities, both within the US and abroad. Common not only continues to hold ground in the coliving sector, but they have also expanded into class-A, large-scale traditional multifamily buildings. In total, Common has $110 million in venture capital to accelerate growth plans and is a prime example of the global possibilities of coliving infrastructure going forward.
Colonies Raises $34 Million in March 2020
French-based coliving company Colonies raised $34 million from investors Idinvest Partners, Global Founders Capital, and La Financière Saint James. Colonies partners with real estate firms and acts as the managing partner for the buildings they secure. This has also lead them to an exciting $168 million commitment from LBO France in real estate projects over the coming years that will eventually be turned over to Colonies for management. Colonies is proving that there are many venues in which to succeed in the coliving sector with the right ideas and the proper funding.
These four examples highlight the importance of sustainable, responsible, and innovative housing from now on. It is clear that throughout the pandemic, the qualities of community and collaborative care have become more vital than ever and are providing an exceptional opportunity for investors to get in on the ground floor of a proven and exciting housing model.
