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Since launching a year ago, 42Floors says that it has connected some 1,000 businesses with over 2 million square feet of office space Assuming very conservativ

Since launching a year ago, 42Floors says that it has connected some 1,000 businesses with over 2 million square feet of office space Assuming very conservatively that an office with 20 employees requires 4400 sq ft, 2million/4400=454. Isn't that an extremely low number for one year of operations?

loganfrederick 14y ago
I know nothing about the industry, but I'd guess you'd have to compare that number against how many office placements traditional commercial real estate agents place. Using your number, that's still more than one company placed per day, which sounds pretty impressive to me.
wtvanhest 14y ago
"1,000 businesses with over 2 million square feet of office space." They are connecting on average 2,000 sf per office, so they are smaller startups, probably averaging 10 employees. >Isn't that low for one year of operations? I'd be pretty happy with that ramp. Those are serious numbers in a short span of time. I worked in Multifamily brokerage so we sold apartment complexes rather than renting office space, but the average broker would sell between 1 and 5 assets a year. Helping to facilitate 1,000+ transactions from a ramp of zero is awesome.
martythemaniak 14y ago
Not necessarily. With startups it's all about growth, and your calculation misses that completely. For example, your number implies they do a "sale" about once a day, however if they've seen good growth, they might have been doing one "sale" a week last year, and 30 "sales"/week today. Remember that in the early stages exponential growth looks worse than even linear growth. (example: http://www.wolframalpha.com/input/?i=y%3D1.5%5E%28x-3%29%2C+y+%3D+x http://www.wolframalpha.com/input/?i=y%3D1.5%5E%28x-3%29%2C+...)
- jaf12duke 14y ago
  All we care about is monthly growth. And it's consistent.
earbitscom 14y ago
This is a marketplace business. You can't expect explosive growth when dealing with a two-sided market. You have to grow solidly on both sides or you risk having too much supply or demand, and alienating your early customers.
- jaf12duke 14y ago
  Ever so slowly, but consistently...Get some supply, go find demand. Expand. Get some supply, go find demand. Lots and lots of small fly wheels to get going...

loganfrederick 14y ago

I know nothing about the industry, but I'd guess you'd have to compare that number against how many office placements traditional commercial real estate agents place. Using your number, that's still more than one company placed per day, which sounds pretty impressive to me.

wtvanhest 14y ago

"1,000 businesses with over 2 million square feet of office space." They are connecting on average 2,000 sf per office, so they are smaller startups, probably averaging 10 employees. >Isn't that low for one year of operations? I'd be pretty happy with that ramp. Those are serious numbers in a short span of time. I worked in Multifamily brokerage so we sold apartment complexes rather than renting office space, but the average broker would sell between 1 and 5 assets a year. Helping to facilitate 1,000+ transactions from a ramp of zero is awesome.

martythemaniak 14y ago

Not necessarily. With startups it's all about growth, and your calculation misses that completely. For example, your number implies they do a "sale" about once a day, however if they've seen good growth, they might have been doing one "sale" a week last year, and 30 "sales"/week today. Remember that in the early stages exponential growth looks worse than even linear growth. (example: http://www.wolframalpha.com/input/?i=y%3D1.5%5E%28x-3%29%2C+y+%3D+x http://www.wolframalpha.com/input/?i=y%3D1.5%5E%28x-3%29%2C+...)

jaf12duke 14y ago
All we care about is monthly growth. And it's consistent.

earbitscom 14y ago

This is a marketplace business. You can't expect explosive growth when dealing with a two-sided market. You have to grow solidly on both sides or you risk having too much supply or demand, and alienating your early customers.

jaf12duke 14y ago
Ever so slowly, but consistently...Get some supply, go find demand. Expand. Get some supply, go find demand. Lots and lots of small fly wheels to get going...