This 1001 Startup Idea from YoStartups is to create a Blockchain Platform for Co-Working & Co-Living Spaces that can offer global co-living cum co-working spaces on a subscription basis with all the amenities that an office or home can provide.
Market Definition for 1001 Startup Ideas – Blockchain Platform for Co-Working & Living Spaces
As per CapitaLand, by 2020 the millennials and individuals in their 20’s and 30’s will account for more than 50% of the workforce and will spend more than $200 billion in travel. Additionally Goldman Sachs estimates that the P2P room sharing economy to grow to around 500 million nights by 2020. UN estimates that cities will host 60% of the world’s population by 2030. The advancement in technology and the flexibility with the younger workforce gives them the freedom to work anywhere in the world; the companies will also be forced to find more flexible work locations to cater to these tech-savvy professionals
Airbnb in the last round of fundraising raised about $1 billion in the Q1 of 2017 at a valuation of $31 billion. WeWork a co-working space recently became the 6th most valuable startup in the world at a valued at $20B. WeLive, a subsidiary of WeWork is beta testing a property on Wall Street where 600 members are expected to stay in 45 apartments, and Adam Neumann confirmed to the Guardian that they expect this number to rise to 34,000 by 2018. Common, a co-living startup, received over 10,000 applications to fill its nine residences across three major US cities in 2016. Common raised $7.35 million last summer for its expansion.
So co-working and co-living, are like peas and pod, complementing services catering to the same demographics, millennials, digital nomads, freelancers.
Integration of Blockchain technology with the basic platform would eliminate the need for building trust, as reputation is already built on a blockchain by past transaction history and verified with confirmed payments. Blockchains can also store tamper-proof identity records with payment credentials in a smart contract that will upon confirmation of service, release the payment. This kind of trust building would encourage landlords to put in more inventory into the market.
Competitor Analysis for 1001 Startup Ideas – Blockchain Platform for Co-Working & Co-Living Spaces
Roam International is an innovative co-living and co-working community with spaces in London, Miami, San Francisco, Tokyo, Bali, and Madrid. People can sign a single lease, and then roam between properties across three continents. Each Roam location comes with a co-working space, commercial-grade kitchen, media and laundry rooms, diverse programming, and other features.
The Ascott Limited is a Singapore based company operating 29,000 serviced residence units in cities covering Americas, Asia Pacific, Europe, and the Middle East. They are aiming to have 10,000 units under the Lyf brand globally by 2020 to cater to the trend of co-living and co-working spaces. Each Lyf space will have workshops with local artisans, hackathons with regional startup accelerators or incubators. Lyf residents also get access to local events and concerts.
Pain Point and Target Audience for 1001 Startup Ideas – Blockchain Platform for Co-Working & Co-Living Spaces
The biggest pain point that property hosts experiences is the chances of his/ her property being damaged. This risk and subsequent pain stems from trusting a guest based on the gut feeling or by exchanging messages about their background, their work profile, the reason for their visit, etc.
Another pain point is the delay in payment, the payments are released 24 hours after the guest checks-in. This makes renting a property on short notice difficult as there is no sure shot way to verify guest reputation quickly.
On the guest’s side, it is about the quality of the service, cleanliness of the property, safety and security concerns, the decision has to be solely based on reviews and pictures, which at times can be faked by the landlord.
It is often difficult for a new person from a different city to find accommodation and workspace, because of his inability to prove his reputation immediately
The target audience for this 1001startup idea would be frequent travelers, freelancers, and professionals travelling intercity for office work.
Value proposition for 1001 Startup Ideas – Blockchain Platform for Co-Working & Co-Living Spaces
Co-working and Co-living spaces offer an instant option for community living to newbies, getting access to a community when one moves to a new city is very difficult. There are no deposits for co-living and co-working spaces, and they offer the bare minimum infrastructure like the internet, laundry, community kitchen, basic housekeeping, etc.
Co-Working and Co-living places can offer shorter and flexible leasing options with authenticated credentials stored on a blockchain
For the host, blockchain can store tamperproof verified ID’s tied to the payment credentials, that can be executed on the fulfillment of agreed terms on a smartcontract while accepting the booking. All the reviews can be verified with credentials stored on the blockchain with verified proofs of past payments. This kind of inbuilt trust mechanism on the platform can speed up the process of booking and generate more revenue for the host.
For the guests, it’s easier to establish trust with confidence built over a period based on past transaction history. Guests will also get access to verified host information and guest reviews before making the booking.
Business Model for 1001 Startup Ideas – Blockchain Platform for Co-Working & Co-Living Spaces
The startup will earn a small transaction or a facilitation fee for enabling bookings on its platform. Once it reaches the required members, who are active users of its offering. It can start onboarding new properties on a long-term lease for better realizations across various locations and geographies . In the long-term, the startup will have to focus on developing its properties from ground zero for consistent brand visibility, service levels, and consistent pricing models.
Way to Market for 1001 Startup Ideas – Blockchain Platform for Co-Working & Co-Living Spaces
The proposed startup will have to do a detailed feasibility study to identify locations best suited for co-living and co-working by analyzing proximity to business hubs, accessibility via public transport, general safety & security, etc.
The startup will have to start onboarding properties on its platform after doing the basic renovation to make the properties suitable for a co-living and co-working space.
In starting, the startup will have to onboard properties on a revenue-sharing model from the local property owners. After the business model is validated and the startup gains traction and a consistent occupancy rate, it can raise money from investors, venture capitalists to onboard more properties on a long-term lease model.
Once the long-term lease model is validated, the startup can start developing properties from the ground up to secure its foothold in the industry.
Milestones for 1001 Startup Ideas – Blockchain Platform for Co-Working & Co-Living Spaces
In the first year, the startup will have to focus on developing the platform and start onboarding properties by tieing up with local landlords and tieing up with various other OTA’s and travel agencies for referrals till the platform becomes popular.
In the second year, the platform will have to focus on developing more properties and adding more locations based on affordability, location, and proximity to business hubs, etc. at this stage, the start-up will have to start getting into long-leases of properties for sustainability and de-risking the business model to attract more investors.
Investment Needed for Prototype for 1001 Startup Ideas – Blockchain Platform for Co-Working & Co-Living Spaces
The proposed startup will have to build an online platform for listing properties, booking and payments. For reputation management using smartcontracts (Ethereum blockchain), it can integrate blockchain API’s from third-party API providers like Mastercard, winding tree, coinbase, chromaway on its platform for payment solutions, wallet. The startup can approach, Coin Apex, Boost VC to raise funds up to $100,000.
Team Capability for 1001 Startup Ideas – Blockchain Platform for Co-Working & Co-Living Spaces
The team will need a full-stack developer who has developed applications for the hospitality industry with experience on ruby on rails, Json nodes, Mysql. Experience in integration of Blockchain API’s on the platform for payments, reputation management via a smartcontract is a bonus. Other team members should be veterans from the travel industry, real estate brokerage or real estate portfolio managers.
Investors/Expert Take for 1001 Startup Ideas – Blockchain Platform for Co-Working & Co-Living Spaces
Due to the recent advancements in technology, travel infrastructure, for technology-savvy professionals, career opportunities have opened up worldwide for short-term and long-time assignment. This presents a perfect opportunity for co-living, co-working spaces to cater to these digital nomads who prefer working in different geographies, experience new cultures, etc.
Blockchain adoption concerns will slowly ease out as more and more people start using the technology and understand the high levels of security the blockchain provide over other platforms. A blockchain-based system that can aggregate the user’s ID, payment information, reputation, past transaction history, and reviews would make transactions easier and bookings faster; as it would alleviate issues related to trust and payments.
This 1001 startup idea article is from Yostartups, YoStartups is a Pre Accelerator and it empowers entrepreneurs to propel their business ideas into successful ventures. Yostartups’ core mission is to take the message of entrepreneurship to 1 billion people globally by 2020.
In case you are looking at scaling or launching a venture on similar lines, you can apply for our virtual acceleration program Excelrate on our website, Yostartups.com, Yostartups’ Excelrate program will help you in streamlining and structuring your startup idea. We have limited scholarships and discount packs for deserving startups, depending on the strength of your application, you may qualify for a discount.
*Any information given in the article does not constitute any warranty of marketability or fitness for a particular business idea for any market or industry segment. It is the readers’ sole responsibility to further research and assess the market opportunity.