October 2019
Vol 6 | Issue 257

Q&A with Nick Iovacchini of KettleSpace

CEO & Co-Founder

Principle Series:

KettleSpace partners with leading restaurants and hotels to transform their space during underutilized times into on-demand workspaces which provide unprecedented value to users. On the supply side, our asset light platform delivers a turnkey “autonomous operations” solution that allows our hospitality partners to unlock a new profit center. On the demand side, we provide our users with productive space to work/meet, perks + discounts, relevant training and educational programming, and professional + social networking.

The way people work is changing, as evidenced by the explosive growth of traditional coworking companies. This change is here to stay and there are massive addressable B2C and B2B market opportunities. The recent struggles by some industry leaders are evidence, however that the companies who will own sustainable positions in the market must possess both the ability to scale AND strong foundational unit economics. KettleSpace has both, along with a science-based approach to creating a connected membership community – this combination will secure a leadership position in the coworking space utilizing only a fraction of capital required by competition.


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Why is the timing right now for KettleSpace?

"Within a decade, freelancers will make up the majority of the American workforce. For gig economy workers – squatting in Starbucks is awful, working from home is isolating + distracting, and many folks can’t afford $1,000/mo. for a WeWork membership.

Simultaneously, corporations are realizing the days are waning of expecting their employees to show up and work from the office M-F for 50 hours a week. Enterprises wishing to attract + retain top talent must support flexible work options. However, having employees simply work from home can be too unstructured and doesn’t support productivity, while traditional coworking space is prohibitively expensive.

On the other side of our marketplace…
Restaurants, hotels, and cafes have never faced more intense market pressures – failure rates are at historical highs and margins are at historical lows. Between the cost of labor + real estate, changes in consumer behaviors (delivery, mealkits, the rise of QSR), and a saturated competitive landscape, the hospitality industry needs help. Meanwhile, the majority of these businesses sit empty, closed, or fighting squatters during prime working hours. The industry is desperate for solutions that improve a fundamentally underperforming business model and deliver value to the bottom line.
"

What makes you different from the traditional coworking model?

The way people work is changing, as evidenced by the explosive growth of traditional coworking companies. This change is here to stay and there are massive addressable B2C and B2B market opportunities emerging. The recent struggles by some industry leaders are evidence, however that the companies who will own sustainable positions in the market must possess both the ability to scale AND strong foundational unit economics. KettleSpace has both, giving us a strong competitive advantage and requiring only a fraction of capital needed by competition.

Looking out 10 years into the future in a world where WiFi, work space, and coffee are easily accessible commodities, our grander vision is to create differentiation + stickiness through a measured approach to facilitating meaningful human to human connections. Technology has created a growing sense of “disconnectedness” and we have a unique opportunity to foster a new environment where isolated remote workers can make friends and build their professional networks. To walk this talk, we will are leveraging world class resources in modern behavioral science to engineer a truly connected and engaged community.

Why is your team the team to execute on your grand vision?

Our team is uniquely qualified to unlock this massive opportunity because we have expertise in hospitality, coworking, and behavioral science.

Nick Iovacchini, CEO & Co-Founder, is a proven entrepreneur with extensive leadership experience launching, growing, and successfully exiting consumer businesses. Companies that he has started have generated more than $70MM in revenue and have sold more than 10,000,000 products world-wide. After selling his first business, GameWear a licensed sports accessories company, Nick opened Distilled NY, a 7 year old Manhattan-based restaurant, along with industry icon, Drew Nieporent. Nick has expertise in hospitality operations, strategy, business development, and finance.

Having deep experience in both real estate and traditional coworking, Dan Rosenzweig, CXO & Co-Founder, is the architect of the KettleSpace asset light coworking model. The vision for KettleSpace was born during Dan’s tenure as an early WeWork Real Estate Team Member, where he focused on site selection, deal underwriting and execution. While there, he helped 3x WeWork’s real estate holdings and expand into new domestic and international markets across the North and South America, Europe, and Asia.

Serving as Lead Investor in this round and Investor Director to the Board, Adam Burgoon brings a wealth of experience to KettleSpace. Having been a partner at KarpReilly Growth Investors where he was investing in high potential breakout companies for the last 18 years, Adam is launching a new fund, Drumbeat Ventures, which is aimed at helping founders intentionally design better workplace cultures that bring out the best in people by leveraging his expertise in modern behavior science.


Nick Iovacchini of KettleSpace

Nick Iovacchini, CEO & Co-Founder, is a proven entrepreneur with extensive leadership experience launching, growing, and successfully exiting consumer businesses. Companies that he has started have generated more than $70MM in revenue and have sold more than 10,000,000 products world-wide. After selling his first business, GameWear a licensed sports accessories company, Nick opened Distilled NY, a 7 year old Manhattan-based restaurant, along with industry icon, Drew Nieporent. Nick has expertise in hospitality operations, strategy, business development, and finance. Contact Nick 

Nick@KettleSpace.com