VC Firm Backing South Korean Coworking Giant FastFive Seeks Exit Following IPO Postponement

FastFive, one of South Korea’s largest coworking operators, has postponed its plans for an IPO.

Currently, FastFive operates 53 locations across South Korea, primarily in the Seoul metropolitan area.

Founded in 2015, the company raised approximately €10 million two years after its incorporation, with a valuation of €26 million in 2017. This capital injection fueled rapid expansion, propelling FastFive to a valuation of around €220 million by 2020. At that time, the company and its early investors were considering an IPO, but the onset of the COVID-19 pandemic put those plans on hold.

One of the 2017 investors, VC firm TS Investment, is now looking to sell its 8% stake in FastFive, according to an article published by online media outlet Chosun. TS Investment has expressed doubts about the likelihood of the IPO being rescheduled in the near future.

Despite consistent revenue growth, FastFive has yet to achieve profitability. The company reported a deficit of €3.3 million last year, as noted in the article.

A source in the VC industry, quoted by Chosun, stated: “The value of coworking space operators has declined following the bankruptcy of WeWork. However, domestic coworking spaces are experiencing relatively solid growth.” The source added: “While the returns may not meet initial expectations, selling equity in FastFive itself is unlikely to face significant challenges.”

Pic source: FastFive Facebook header