Mindspace’s co-founder interview, Yotam Alroy – “How we built a global coworking player in less than 10 years” (Podcast)
At the last Coworking Europe 2024 conference, Yotam Alroy, Mindspace‘s co-founder, and Tom Sleigh, from Colliers, hosted a stage interview that was recorded and made available on the Coworking Europe Podcast Channel.
Yotam Alroy detailed the company’s strategic evolution—focusing on early growth, expansion into Germany, and a disciplined shift toward profitability.
Origins, early Growth and continued expansion since then
Mindspace launched in 2013 after Yotam Alroy, inspired by an early WeWork visit, saw the potential of coworking. The first 1,000 m² space in Tel Aviv filled within five weeks—despite offering prices twice as high as competitors. Encouraged by demand from corporates like Uber and Palantir, Mindspace rapidly expanded, taking over the former Tel Aviv Stock Exchange building for its second location.
Rather than further saturating the local market, the founders looked abroad. Berlin was chosen over London or the U.S. due to its economic potential and coworking market gaps. A German real estate partner helped fund operations, enabling Mindspace to open a 5,000 m² site in Berlin and another in Hamburg shortly after. The company consistently focused on central locations attractive to mature business clients.
While early growth prioritized scale, a turning point came in 2018 when investor concerns prompted a new focus on profitability. Mindspace adopted EBITDA as its key performance metric and pursued hybrid leases and management agreements, particularly challenging to secure in continental Europe. By 2019, most locations were profitable—a position that helped the company remain resilient through the pandemic.
Despite COVID disruptions, Mindspace raised US$70 million in late 2021, expanding its portfolio by nearly 50%. To date, the company has raised US$150 million.
As the company expanded, maintaining internal culture became a priority. Mindspace built local teams from the ground up and emphasized internal promotions to preserve consistency. Leadership adapted by decentralizing decision-making and trusting regional managers, with headquarters focusing on strategic oversight.
Amid a soft real estate market, Mindspace continues to expand selectively while maintaining strict financial discipline. Profitability remains central, and the company’s hybrid model—balancing ownership, partnerships, and local operations—positions it to adapt to shifting market dynamics.
From its Tel Aviv beginnings to its current international footprint, Mindspace’s trajectory has been shaped by bold early moves, design-led customer experience, and a firm grip on profitability.”
Episode on Spotify Here
