<ul class="summary-list"><li>The founder of office rental startup Knotel, Amol Sarva, is launching a $100 million fund.</li><li>Life Extension Ventures will invest in startups focused on "longevity for people and planet."</li></ul><p>A year and a half after his proptech startup collapsed, Amol Sarva has resurfaced in Silicon Valley — this time as a VC.</p><p>The former startup founder announced the launch of his new $100 million fund, Life Extension Ventures. Based in New York, the fund will focus on "longevity for people and planet."</p><p>Inaki Berenguer, who founded insurance-tech startup CoverWallet as well as Contactive and Pixable, is helming the fund alongside Sarva, who led Knotel from a $1.6 billion valuation straight to bankruptcy.</p><p>Sarva founded Knotel in 2015 alongside Russian-born entrepreneur Edward Shenderovich. The office-rental startup designed and built custom headquarters for corporations, leasing out the spaces under flexible terms.</p><p>Early on, Sarva often pitted Knotel against industry incumbent WeWork, even telling <a href="https://www.bloomberg.com/news/articles/2019-08-21/steadier-than-wework-knotel-s-pitch-vaults-it-to-unicorn-status#xj4y7vzkg">Bloomberg in a 2019 interview</a> that his startup would overtake the larger competitor, likening it to Amazon overtaking eBay and Facebook forcing Myspace into obscurity.</p><p>At first, it seemed like Sarva was right. At its height, Knotel managed <a href="https://www.businessinsider.com/inside-knotel-financials-growth-amol-sarva-2020-6">nearly 5 million square feet of property</a>, raising <a href="https://www.businessinsider.com/inside-knotel-financials-growth-amol-sarva-2020-6">$560 million over three years</a> and reaching unicorn status.</p><p>When the pandemic hit and offices moved to remote work in March 2020, Knotel <a href="https://www.businessinsider.com/knotel-cuts-employees-as-coronavirus-hits-flexible-office-hard-2020-3">laid off or furloughed half of its employees</a> and struggled to pay landlords, even while promising investors that profitability was around the corner. However, <a href="https://www.businessinsider.com/inside-knotel-financials-growth-amol-sarva-2020-6">employees told Insider</a> that issues with the company began long before the pandemic. Knotel's obsession with beating WeWork led to bidding wars, vacant offices, and damaged relationships with landlords and brokers.</p><p>In January 2021, Knotel <a href="https://www.businessinsider.com/knotel-filing-for-bankruptcy-2020-finances-show-losses-2021-1">filed for Chapter 11 bankruptcy</a> and announced its intention to sell its business to commercial real estate company and Knotel investor Newmark.          </p><p>Following Knotel's purchase, Sarva cofounded a slew of startups and venture-focused companies throughout 2021, including venture studio Popular Change, B2B ecommerce platform CornerUp, and commercial real-estate startup Aikito, according to his LinkedIn profile.</p><p>Life Extension Ventures will invest in longevity-focused startups that expand beyond just health and fitness, <a href="https://techcrunch.com/2022/08/18/this-new-100m-fund-plans-to-focus-on-startups-accelerating-the-science-around-longevity/">according to TechCrunch</a>, which first reported the news. Longevity startup investments hit $40 billion in 2021 and could grow to $600 billion by 2025, according to The Aging Analytics Agency and Bank of America, and the area can include innovations like biotech-oriented disease prevention to organ regeneration.</p><p>In addition to health and biotech, the fund will also focus on climate-focused startups to support longevity for the plantet.</p><p>Berenguer has already made multiple longevity-focused investments in recent months that are listed on the fund's website: Particle Health, which uses an API to combine health records and Mable, which uses DNA-personalized medicine to treat migraines.</p>

After the disaster of office-rental startup Knotel last year, its founder Amol Sarva is now back as a VC with a $100 million fund

<p>In the early hours of New Year's Day, <keyword id="4239656" type="PERSON" weightage="60" keywordseo="knotel">Knotel</keyword> CEO <keyword id="4239661" type="PERSON" weightage="60" keywordseo="amol-sarva">Amol Sarva</keyword> sent a rambling message to friends and staff titled "Random Musings from 2019."</p><p>The email, seen by Business Insider, presented jumbled thoughts ranging from "African-American writers you have likely overlooked: WEB Dubois, James Baldwin, MLK" to a favorite bar in Davos, Switzerland.</p><p>"We tell people the truth in order to help them find a better way," Sarva wrote.</p><p>The serial entrepreneur, who is 43, cofounded flexible-office company Knotel in 2015. His previous ventures included a brain-stimulation company that raised $13 million and a since folded teamwork app. Sarva hasn't been shy about his ambitions to overtake rival <keyword id="2918346" type="PERSON" weightage="60" keywordseo="WeWork">WeWork</keyword>.</p><p>Knotel found backers from largely outside the venture-capital industry. It reported raising $560 million over three years with an <a href="https://www.bloomberg.com/news/articles/2019-08-21/steadier-than-wework-knotel-s-pitch-vaults-it-to-unicorn-status">implied</a> valuation of about $1.3 billion. </p><p>But as the coronavirus pandemic wallops the commercial real-estate industry, Knotel has stopped boasting.</p><p>A dozen current and former Knotel employees told Business Insider that the company was so focused on beating WeWork, it set itself up for <a href="https://www.businessinsider.com/knotel-leaked-financials-2019-show-missed-targets-2020-4">significant financial stress</a> before the pandemic even hit. Knotel declined to comment for this story.</p><h3><strong>SUBSCRIBE TO BUSINESS INSIDER AND READ THE FULL STORY HERE:</strong></h3><h1><a href="https://www.businessinsider.com/inside-knotel-financials-growth-amol-sarva-2020-6?r=knotel-teaser" target="_blank" rel="noopener">Office-rental startup Knotel bragged it was a nearly profitable anti-WeWork. Now lawsuits are stacking up. 12 insiders reveal what happened to the $400 million Knotel said it raised last year.</a></h1>

Flex-office startup Knotel bragged it was a nearly profitable anti-WeWork. Now lawsuits are stacking up. 12 insiders reveal what happened.

<img src="https://static-ssl.businessinsider.com/image/5e7e5a781378e31e08359fe5-2400/amol sarva headshot.jpg" alt="Amol Sarva headshot" /><p class="source"><span>Knotel</span></p><p class="caption">Knotel laid off and furloughed a total of 50% of the company's staff on Friday.</p><ul class="summary-list"><li>Knotel laid off and furloughed a total of 50% of the company's staff on Friday.</li><li>Days earlier, Knotel CEO Amol Sarva emailed staff with his playbook for media: get good news out ahead of layoffs and dealing with brokers and landlords. </li><li>The first tactic he listed was to "bury" by going to a small publication - the Commercial Observer, whose parent company is a Knotel investor.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Click here for more BI Prime stories.</a></li></ul><p>Days before Knotel <a href="https://www.businessinsider.com/knotel-cuts-employees-as-coronavirus-hits-flexible-office-hard-2020-3">laid off or furloughed half of its employees on Friday</a>, CEO Amol Sarva sent a company-wide email with his media playbook, which twice referenced the need to "bury."  </p><p>Sarva said in the Tuesday afternoon email that an article featuring Knotel that had run earlier in the day was meant to "anticipate/front-run blowback from this week's actions." Those actions included working with brokers and landlords, the impending layoffs, and "customers/asking for things."</p><p>Sarva's email went on to detail a <a href="https://www.knotel.com/knotel-blogs/knotels-new-plan-for-extraordinary-times/">blog post</a> that Knotel made on its website titled "Knotel's New Plan for Extraordinary Times," and called the blog post "the exact script and reasoning for talking to the press."</p><p>A Knotel spokeswoman confirmed the contents of the leaked email to Business Insider and declined further comment.</p><p>Sarva's theme for the story was real estate's role to play in helping the community during the coronavirus crisis. <br />In the email, under a subheading called "tactics," he listed: "bury: small pub e.g. CO." He also wanted to "bury" through "timing - can't wait so perhaps Monday afternoon after markets go nuts; don't be the Monday 9am story." </p><p>The Commercial Observer is a real estate-focused publication whose parent company is a Knotel investor, which the outlet notes in every story. On Tuesday afternoon, it <a href="https://commercialobserver.com/2020/03/knotel-to-offer-its-space-to-governments-for-coronavirus-needs/">ran a story</a> about Knotel providing its empty space to governments globally for coronavirus relief efforts. About two and a half hours later, Sarva sent the email with his communications playbook and the bullet points he communicated to the publication. </p><p>On Friday afternoon, the Commercial Observer also had the <a href="https://commercialobserver.com/2020/03/knotel-cuts-half-of-its-staff-amid-coronavirus-pandemic/">first news</a> about Knotel's layoffs.</p><p>Commercial Observer editor-in-chief Max Gross said while he couldn't comment on Knotel's public-relations strategy, the parent company's investment did not influence the publication's coverage. </p><p>"We run an independent, unbiased, and in my view, world class editorial operation rooted in the core principles of journalism," he said. "We're not afraid to cover the realities of the business. Our story today on Knotel - 50% of their force getting laid off [or furloughed] - I'd argue is not a very positive story. We cover Knotel as we cover anything else."</p><p>A Knotel employee said that, between the Commercial Observer story on Tuesday and Sarva's subsequent email, employees knew job cuts were coming soon.</p><p>But they didn't anticipate severance would be "really tight," said the employee, particularly because Sarva's comments highlighted that Knotel would be profitable this year. In a earlier statement on Friday to Business Insider for a story about the layoffs, Sarva said he still expected the company to be profitable in 2020. </p><p>Workers who were laid off could choose between two weeks' pay or six months' health insurance coverage, the employee said. </p><p><em><strong>Have a tip?</strong> Contact this reporter via encrypted messaging app Signal at +1 (646) 768-1627 using a non-work phone, email at <a href="mailto:mmorris@businessinsider.com">mmorris@businessinsider.com</a>, or Twitter DM at <a href="https://twitter.com/MeghanEMorris">@MeghanEMorris</a>. (PR pitches by email only, please.) You can also <a href="https://www.businessinsider.com/how-to-tip-business-insider-securely-guide-signal-securedrop-2017-6">contact Business Insider securely via SecureDrop</a>.</em></p>            <h3>NOW WATCH: <a href="https://www.businessinsider.com/federal-reserve-zero-percent-rate-dow-dropped-2020-3">Why the Dow plummeted after the Federal Reserve set interest rates at 0%</a></h3>                    <iframe class="bijwplayerclass" src="https://content.jwplatform.com/players/bPY4gJQb-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;"></iframe>            

Leaked memo shows how Knotel's CEO planted a feel-good story and his playbook for burying news about job cuts at the flex-office startup

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d8b5aa52e22af2ba231ed69-2400/amol sarva headshot.jpg" border="0" alt="Amol Sarva headshot" data-mce-source="Knotel" /><p class="source"><span>Knotel</span></p><p class="caption"> Knotel CEO Amol Sarva has criticised both WeWork's business model and its leadership. </p></div><p></p></div></div></p><ul class="summary-list"><li>Amol Sarva is CEO of Knotel, a flexible workspace platform founded in 2016 which recently achieved unicorn status thanks to a $400 million fundraise.</li><li>Knotel has announced 140,000 square feet of office space in London, including 82,000 square feet at Great Portland Estates in Moorgate.</li><li>The expansion come as rival WeWork struggles towards an initial public offering and skeptics question the office-sharing business model. WeWork is reportedly also seeing some landlords cool on leasing deals thanks to its IPO troubles.</li><li>Sarva spoke to Business Insider about where he thinks WeWork has gone wrong, and why he thinks Knotel's flexible workspace model is the future.</li><li><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary&amp;r=US&amp;IR=T">Click here for more BI Prime stories.</a></li></ul><p>Two years ago, Knotel CEO Amol Sarva was bemused.</p><p>He had discovered that a little-known WeWork employee, Ari Matityahu, had turned up several times to Knotel offices, effectively <a href="https://www.businessinsider.com/wework-aggressive-uber-coworking-startup-2017-10?r=US&amp;IR=T">snooping on the company while pretending to be a CEO</a> looking for office space. Knotel offers flexible office space and, at the time, was only operational in New York.</p><p>Knotel's staff clocked Matityahu and Sarva ended up <a href="https://www.businessinsider.com/wework-aggressive-uber-coworking-startup-2017-10?r=US&amp;IR=T">placing a Wild West-style 'Wanted' sign</a> in one of the firm's offices, emblazoned with Matityahu's face. It was jokey, but the underlying message had an edge: We've spotted you.</p><p>What WeWork was doing wasn't illegal, but it must have been galling to have your major, well-funded and often brash competitor sniffing around your operations. It was also at odds with the company's ethical profile.</p><p>"Back in the day, I was quite charitable about it - I thought 'It's not a big deal,'" Sarva says now. "It was kind of hilarious, and it was mainly a testament to how large and disorganised WeWork was becoming... Six months later, I hadn't really thought about that little spy mission that they did."</p><p>Sarva and WeWork's other rivals may have the last laugh.</p><p>In the last three months, Knotel has secured nearly 140,000 sq ft of new space in London, to take its total footprint in London to over 360,000 square feet. This includes a partnership with Great Portland Estates in Moorgate for some 82,000 square feet of space.</p><p>Where Knotel was only present in New York two years ago, it now has a presence in 16 major cities on three continents, and recently <a href="https://www.cityam.com/wework-rival-knotel-secures-unicorn-status-with-400m-funding/">achieved unicorn status</a> with a $400 million fundraise led by Wafra Partners. Knotel is a privately held firm and doesn't release financials.</p><p>Meanwhile <a href="https://www.businessinsider.com/wework-co-founder-adam-neumann-is-stepping-down-as-ceo-2019-9?r=US&amp;IR=T">WeWork CEO Adam Neumann stepped down</a> and the firm has delayed its IPO thanks to a deluge of negative press about its strange governance setup, Neumann's idiosyncratic behaviour, and <a href="https://markets.businessinsider.com/news/stocks/wework-ipo-adam-neumann-business-model-valuation-2019-9-1028530754?utm_source=markets&amp;utm_medium=ingest">questions around its core business model</a>.</p><h2>Knotel focuses on flexible offices, not sharing, and says this is how they've expanded successfully in London</h2><p>Knotel remains a smaller operation than WeWork, with 360,000 square feet in London.</p><p>WeWork is the city's biggest tenant, with an estimated 2.6 million square feet of office space while Regus, which also provides coworking space, has over 1.4 million square feet.</p><p>But WeWork's position in London is reportedly now at risk. <a href="https://www.bloomberg.com/news/articles/2019-09-18/london-deals-for-wework-buildings-falter-amid-ipo-market-fallout">Last week, Bloomberg reported</a> that a Saudi Arabia-based VC firm pulled out of a £90 million ($112 million) deal with WeWork. The same piece reported that talks had stalled on the sale of WeWork Waterloo, which <a href="https://www.wework.com/en-GB/buildings/10-york-rd--london">WeWork describes as the largest co-working facility in the world</a>.</p><p>Sarva views WeWork's troubles as fundamentally symptomatic of its business model. He says building landlords who were initially sceptical are now warming up to Knotel's more flexible model, as WeWork falters.</p><p>WeWork is known for being a temporary home to fast-growing startups and freelancers, although it's increasingly targeting bigger companies. Knotel only focuses on flexible spaces for larger clients like Microsoft and Starbucks. The basic idea behind flexible workspace is that employees can come and go as needed, and their employees don't typically need to sign long-term leases, as is often the case with coworking arrangements.</p><p>"Probably four or five years ago, there were only a handful of owners who believed flexibility was the trend of the future," Sarva said. "That has changed, and I think the vast majority of owners agree with us that flexibility is the direction; that they need a strategy; that a large share of their property will be that way."</p><p>He continued: "Over the last year or two, owners also started questioning coworking as a strategy. We've been working on it for four years, saying it's too expensive; it isn't efficient; it deploys too much too much capital to create too little yield; capital efficiency is poor; and it's not really focused on enterprise. There are things that have been changing over the years, and owners have been noticing."</p><h2>'If WeWork were selling pizzas, this would still be a terrible scandal'</h2><p>Sarva is naturally bullish - but it's also possible that a severe shrink in WeWork's business could have negative knock-on effects for the entire flexible real estate market.</p><p>He insists, though, that the flexible workspace model trumps coworking. "Our customers are big companies, and they're not really looking for coworking - they're looking for an office. Once they come to learn about us, they're like 'Oh, wow. This is easier. This is better for us.'"</p><p>And he is sceptical about the leadership issues that have derailed WeWork's IPO.</p><p>"They've had the wrong people," he said. "It seems to just be about their leadership. It's nothing to do with coworking. I mean, if these guys were selling pizzas, this would still be a terrible scandal."</p><p>As for Knotel, Sarva is planning to double the number of cities where the company has a presence. The company currently has almost 240 spaces across 16 cities.</p><p>"Some of our cities are very young - they're on their first couple of locations, and that'll have to get to 10, and then 50 and then 100, and then we'll carry on from there," he explained. "There'll be another 10 or 15 cities over the next couple of years. There's really only 30 that matter. We're going to keep deploying our model. Our model is so efficient.</p><p>"What we work on all day, apart from opening new Knotel [locations] which make money, is continuing to improve that fundamental model, because our scope within cities and across cities is one big advantages against some of the other businesses that say they do what we do."</p>     <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/iphone-ios-13-photo-gallery-tricks-you-need-to-know-2019-9">All the new iPhone Photos tricks you need to know</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/R5CwoBeD-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

A major WeWork rival is expanding rapidly in London just as WeWork's position as the city's biggest tenant is at risk

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d80dd7d2e22af362c670003-2400/newman street 6-edit.jpg" border="0" alt="Knotel office" data-mce-source="Knotel" data-mce-caption="Knotel office" /><p class="source"><span>Knotel</span></p><p class="caption">Knotel office</p></div><p></p></div></div></p><ul class="summary-list"><li>WeWork's tumultuous path towards IPO has been casting a shadow on other flexible office providers.</li><li>The chief executive officer of Knotel, which recently raised $400 million, spoke to Business Insider about the differences between WeWork's business model and managing offices for bigger companies. </li><li><a href="https://www.businessinsider.com/heres-the-latest-wework-news-2019-6">For more stories about WeWork, click here.</a></li></ul><p>The flexible office space was fueled by dollars chasing WeWork's success. But not every company in the space wants to emulate WeWork now, particularly as its plans to go public have soured. </p><p>WeWork's troubles could hurt rivals, including Knotel, the company's co-founder and Chief Executive Officer Amol Sarva told Business Insider in an interview last week. </p><p>"It's hard when you have to walk over a fallen giant," he said. </p><p><em><strong>Read more</strong>: <a href="https://www.businessinsider.com/wework-will-manufacture-glass-and-aluminum-walls-in-new-jersey-2019-9">Now WeWork wants to be a manufacturer. The coworking company is opening a 200,000-square-foot New Jersey plant to make its signature aluminum and glass walls.</a></em></p><p><div class="KonaFilter image-container float_left"><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d80de852e22af311f2ca3b9-2400/amol headshot.jpeg" border="0" alt="Amol Sarva Knotel" width="237" height="178" data-mce-source="Knotel" data-mce-caption="Amol Sarva, CEO of flexible office provider Knotel" /><p class="source"><span>Knotel</span></p><p class="caption">Amol Sarva, CEO of flexible office provider Knotel</p></div><p></p></div>Money-losing WeWork had been weighing a valuation of as little as $10 billion in a potential public offering, <a href="https://www.reuters.com/article/us-wework-ipo-valuation/exclusive-wework-considers-ipo-valuation-of-as-low-as-10-billion-sources-idUSKCN1VY1PB">according to reports</a>, significantly lower than the $47 billion it had commanded in its last round of fundraising. And even after all that, it decided this week to <a href="https://markets.businessinsider.com/news/stocks/wework-reportedly-postpones-ipo-lack-of-investor-interest-2019-9-1028529278">delay its IPO</a> because of weak investor demand. </p><p>That being said, Knotel considers itself to be very different than its larger rival because it only works with big companies like Microsoft and Starbucks. WeWork <a href="https://www.businessinsider.com/what-weworks-competition-and-vc-are-looking-for-in-ipo-filing-2019-8">is trying to court Fortune 500 clients which provide a more reliable revenue stream,</a> but a majority (60%) of its customers are small companies, startups, and individuals looking for communal office space and amenities like networking and coffee. </p><p>The idea of coworking - meaning the term that WeWork helped popularize - is "over," Sarva said. "We're almost at the point where people say 'flex."</p><p>In contrast to coworking's communal space model, flexible office providers manage office space for companies that can be outfitted more quickly and cheaply than a traditional lease. It's also less of a commitment for customers: traditional leases run 10-15 years, whereas flexible office providers set agreements in months or a few years. Workers only share the space with their colleagues, and companies can save on long-term costs by outsourcing office management - managing office audiovisual equipment and restocking supplies, for example - to their flexible office provider. </p><p>"Knotel's business isn't about the cool couch and keg - those are commodities, " he added, as another knock to WeWork's culture. </p><p>Like Sarva, CEOs of other flexible space providers are distancing themselves from WeWork's model. Ryan Simonetti, the CEO of event and flex-space startup Convene, <a href="https://www.businessinsider.com/convenes-ceo-explains-flex-space-financials-metrics-2019-9">talked to Business Insider recently</a> about the difficulty of comparing flex-office companies. </p><p><strong>"</strong>The reality is that if you go under the hood of each of the companies, I think all of us have a different strategy," Simonetti said.</p><p><em><strong>Read more:</strong><a href="https://www.businessinsider.com/wework-filing-reveals-how-much-work-becoming-profitable-will-take-2019-8"> WeWork lays out its path to profitability - and most of its options involve slowing its breakneck growth</a></em></p><p>Both Convene and Knotel have brought in significant funding. The former <a href="https://www.bloomberg.com/news/articles/2018-07-10/wework-rival-convene-raises-152-million-to-fuel-its-expansion">raised</a> $152 million last July at a $500 million valuation. </p><p>In August, Knotel completed a $400 million round of fundraising led by Wafra, the investment arm of Kuwait, as well as Japan's Mori Trust, Itochu Corp. and Mercuria Investment Co. It's now valued at more than $1 billion, according to the company. </p><p>Founded in 2016, Knotel has more than 4 million feet across 200 locations in cities, including New York San Francisco, London, Los Angeles, Washington, D.C., Paris, and Berlin. </p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/webinar-headset-ceo-walks-through-successful-series-a-pitch-deck-2019-9">WATCH: The founder of buzzy cannabis-tech startup Headset walked us through the pitch deck that helped him raise $12 million and ink deals with Nielsen and Deloitte</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/pv3zDQUZ-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

The CEO of $1 billion WeWork rival Knotel says the idea of coworking is 'over'

<p>Happy Friday!</p><p>The Big 4 tech companies (Apple, Amazon, Google, and Facebook) all reported earnings Thursday afternoon. <a href="https://www.businessinsider.com/aapl-amzn-goog-fb-q3-earnings-big-tech-results-analysis-2020-10?utm_source=notification&amp;utm_medium=referralrral">The quartet beat Wall Street estimates</a>. </p><p>Lots of good stories from us, so let's get right into it. </p><p><a style="font-weight: bold;" href="http://newsletter.businessinsider.com/join/4np/insider-finance">If you're not yet a subscriber, you can sign up here to get your daily dose of the stories dominating banking, business, and big deals.</a></p><p>Like the newsletter? Hate the newsletter? Feel free to drop me a line at <a href="mailto:ddefrancesco@businessinsider.com">ddefrancesco@businessinsider.com</a> or on Twitter <a href="https://twitter.com/dandefrancesco">@DanDeFrancesco</a>. </p><h1><a href="https://www.businessinsider.com/fintech-drivewealth-pitch-deck-series-c-point72-ventures-2020-10">Check out Point72 Ventures-backed DriveWealth's pitch deck</a></h1><p><a href="https://www.businessinsider.com/fintech-drivewealth-pitch-deck-series-c-point72-ventures-2020-10"><div type="image" title="Robert Cortright, DriveWealth" height="3696" width="4929" msid="78950760" hostid="261"></div></a></p><p>We're a big fan of pitch decks here at Business Insider. In fact, we've built an <a href="https://www.businessinsider.com/searchable-database-of-business-insider-pitch-decks-2020-7">entire searchable database of them</a>. </p><p>Here's a new one from <a href="https://www.businessinsider.com/fintech-drivewealth-pitch-deck-series-c-point72-ventures-2020-10">Rebecca Ungarino</a> that caught my eye for fintech DriveWealth's <a href="https://www.businessinsider.com/fintech-drivewealth-pitch-deck-series-c-point72-ventures-2020-10">Series C raise</a>. </p><p>The size ($56.7 million) and lead investor (Point72 Ventures) in the round are both <a href="https://www.businessinsider.com/fintech-drivewealth-pitch-deck-series-c-point72-ventures-2020-10">noteworthy</a>. However, it's what DriveWealth actually does that makes <a href="https://www.businessinsider.com/fintech-drivewealth-pitch-deck-series-c-point72-ventures-2020-10">this deck so interesting</a>.</p><p>The fintech <a href="https://www.businessinsider.com/fintech-drivewealth-pitch-deck-series-c-point72-ventures-2020-10">helps companies offer financial services</a>, be it stock trading or do-it-yourself investing. In many ways, it's a key figure in the <a href="https://www.businessinsider.com/fintech-drivewealth-pitch-deck-series-c-point72-ventures-2020-10">rise of personal finance apps</a> we've seen over the past few years. </p><p><a href="https://www.businessinsider.com/fintech-drivewealth-pitch-deck-series-c-point72-ventures-2020-10">Check out the entire deck here.</a></p><h2><a href="https://www.businessinsider.com/knotel-layoffs-job-cuts-coworking-fundraise-amol-sarva-office-demand-2020-10">Knotel just slashed headcount again</a></h2><p><a href="https://www.businessinsider.com/knotel-layoffs-job-cuts-coworking-fundraise-amol-sarva-office-demand-2020-10"><div type="image" title="Knotel cofounders" height="2667" width="3556" msid="78950770" hostid="261"></div></a></p><p> Great scoop from <a href="https://www.businessinsider.com/knotel-layoffs-job-cuts-coworking-fundraise-amol-sarva-office-demand-2020-10">Daniel Geiger and Meghan Morris</a> on the latest at Knotel. The <a href="https://www.businessinsider.com/knotel-layoffs-job-cuts-coworking-fundraise-amol-sarva-office-demand-2020-10">flex-space provider</a> is making cuts, and Daniel and Meghan have an inside look at how <a href="https://www.businessinsider.com/knotel-layoffs-job-cuts-coworking-fundraise-amol-sarva-office-demand-2020-10">Amol Sarva</a>, the company's CEO, is pitching it to employees. <a href="https://www.businessinsider.com/knotel-layoffs-job-cuts-coworking-fundraise-amol-sarva-office-demand-2020-10">Read the full story here</a>. </p><h2><a href="https://www.businessinsider.com/adp-earned-wage-access-product-payroll-processing-pilot-customers-2020-10">Payroll giant ADP is getting in on the paycheck-on-demand frenzy</a></h2><p><a href="https://www.businessinsider.com/adp-earned-wage-access-product-payroll-processing-pilot-customers-2020-10"><div type="image" title="ADP employees" height="2880" width="3840" msid="78950772" hostid="261"></div></a></p><p>Earned wage access is one of the <a href="https://www.businessinsider.com/adp-earned-wage-access-product-payroll-processing-pilot-customers-2020-10">hottest trends in payments</a> right now. <a href="https://www.businessinsider.com/adp-earned-wage-access-product-payroll-processing-pilot-customers-2020-10">Shannen Balogh with a nice scoop</a> on one of the world's largest payroll providers throwing its hat in the ring. <a href="https://www.businessinsider.com/adp-earned-wage-access-product-payroll-processing-pilot-customers-2020-10">Read more about ADP's EWA pilot</a>.  </p><h2><a href="https://www.businessinsider.com/former-blackrock-jack-chandler-lasalle-exec-joins-real-estate-crowdfunding-crowdstreet-2020-10">BlackRock's former real estate head is joining a crowdfunding startup's investment committee with hopes to help smaller investors access smart private real estate market bets</a></h2><p><a href="https://www.businessinsider.com/former-blackrock-jack-chandler-lasalle-exec-joins-real-estate-crowdfunding-crowdstreet-2020-10"><div type="image" title="Jack Chandler, founder of Majesteka Investments Holdings" height="913" width="1216" msid="78950775" hostid="261"></div></a></p><p>Speaking of scoops, <a href="https://www.businessinsider.com/former-blackrock-jack-chandler-lasalle-exec-joins-real-estate-crowdfunding-crowdstreet-2020-10">nice people move story from Alex Nicoll</a>. Jack Chandler, the former BlackRock real estate head, has joined a startup. Read more about <a href="https://www.businessinsider.com/former-blackrock-jack-chandler-lasalle-exec-joins-real-estate-crowdfunding-crowdstreet-2020-10">Chandler joining CrowdStreet</a> and what motivated him to make the move. <a href="https://www.businessinsider.com/former-blackrock-jack-chandler-lasalle-exec-joins-real-estate-crowdfunding-crowdstreet-2020-10">Check out the full story here</a>.</p><h2><a href="https://www.businessinsider.com/state-street-coo-interview-return-to-office-plans-hybrid-model-2020-10">Here's how State Street is working to bring 8,000 people back to the office </a></h2><p><a href="https://www.businessinsider.com/state-street-coo-interview-return-to-office-plans-hybrid-model-2020-10"><div type="image" title="Lou Maiuri State Street" height="2990" width="3986" msid="78950776" hostid="261"></div></a></p><p>Returning to the office is a <a href="https://www.businessinsider.com/state-street-coo-interview-return-to-office-plans-hybrid-model-2020-10">tricky endeavor</a>, made more difficult by a spike in COVID-19 cases in recent weeks. Reed Alexander spoke with <a href="https://www.businessinsider.com/state-street-coo-interview-return-to-office-plans-hybrid-model-2020-10">State Street's COO</a> about the firm's approach to slowly getting some people back in the office. <a href="https://www.businessinsider.com/state-street-coo-interview-return-to-office-plans-hybrid-model-2020-10">Get all the details here</a>. </p><h2><strong style="color: #222222; font-size: 15px;">Odd lots:</strong></h2><p><a href="https://www.wsj.com/articles/in-hbos-industry-gen-z-bankers-in-existential-crisis-11603897417">In HBO's 'Industry,' Gen Z Bankers in Existential Crisis (WSJ)</a></p><p><a href="https://www.reuters.com/article/us-jc-penney-sale-bankruptcy/j-c-penney-enters-asset-purchase-agreement-with-brookfield-simon-idUSKBN27E07T">J.C. Penney enters asset purchase agreement with Brookfield, Simon (Reuters)</a></p><p><a href="https://www.bloomberg.com/news/features/2020-10-29/small-business-administration-10-000-grant-fraud-went-viral-hurting-program?sref=5xrDvJna">An Avalanche of Fraud Buried a Small-Business Relief Program (Bloomberg)</a></p><p><a href="https://www.businessinsider.com/oil-giant-exxon-to-cut-workers-layoffs-after-strategic-review-2020-10">Oil giant Exxon plans to cut up to 1,900 US workers after a strategic review (BI)</a></p><p><a href="https://www.thecut.com/2020/10/sinkhole-opens-in-nyc-sidewalk-plunging-man-into-rat-pit.html">And Now, a Sinkhole Full of Rats (The Cut)</a></p>

DriveWealth pitch deck — ADP pilots new twist on paychecks — State Street's return to office

<img src="https://static-ssl.businessinsider.com/image/5e7e42792d654f44533116f2-2400/amol headshot.jpeg" alt="Amol Sarva Knotel" /><p class="source"><span>Knotel</span></p><p class="caption">Amol Sarva, CEO of flexible office provider Knotel</p><ul class="summary-list"><li>Knotel laid off 127 employees and furloughed 68, a company spokeswoman said. </li><li>The company raised $400 million in August at a $1 billion valuation.</li><li>The coronavirus is hitting real estate hard as offices across the country temporarily shutter and tenants struggle to pay rent.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul><p>Knotel is the latest flexible space company hit by layoffs, Business Insider has learned.</p><p>The company laid off 127 employees - 30% of its workforce - and furloughed 68, which is 20% of its global employee base. The cuts were distributed evenly across Knotel's 17 markets, a spokeswoman said. </p><p>It was not immediately clear what kind of severance package the employees received. </p><p>In January, Knotel laid off close to 20 people in one of its New York offices, real estate publication The Real Deal <a href="https://therealdeal.com/2020/01/17/knotel-fires-up-to-a-third-of-its-new-york-office/">reported at the time</a>.</p><p>In August, Knotel completed a $400 million round of fundraising led by Wafra, the investment arm of Kuwait, as well as Japan's Mori Trust, Itochu Corp., and Mercuria Investment Co. The round valued the company at more than $1 billion.</p><p>Other flexible space companies have cut staff as they close locations and their tenants struggle to pay rent. </p><p>On Monday, Convene, the Brookfield-backed shared-spaces company, <a href="https://www.businessinsider.com/convene-furloughs-half-of-remaining-employees-after-layoffs-last-week-2020-3">furloughed 421 employees</a> as its 32 locations stand empty. Last week, Convene <a href="https://www.businessinsider.com/convene-lays-off-20-percent-workers-coronavirus-hits-flex-space-2020-3">laid off</a> nearly 150 employees. </p><p>Earlier in the month, WeWork said in a <a href="https://labor.ny.gov/app/warn/details.asp?id=7134">government filing</a> that it would lay off 45 New York employees. A representative for WeWork did not respond to a request for comment about its layoffs.  The embattled office company is keeping its offices despite criticism from tenants and some local <a href="https://twitter.com/AMDanQuart/status/1243554258009632776">government officials. </a></p><p>On the other hand, the women-focused coworking company The Wing, which has a dozen locations in the US and London, said on March 13 it would close its locations until April 1. During the closures, the company <a href="https://medium.com/the-wing/covid-19-closures-how-were-bringing-our-community-online-425922bf313a">said</a> it would not charge members, and on Monday, CEO Audrey Gelman said The Wing would donate its New York space to <a href="https://www.businessinsider.com/the-wing-ceo-audrey-gelman-donate-space-to-coronavirus-relief-2020-3">coronavirus relief efforts</a>.  </p><p><em><strong>Have a tip?</strong> Contact this reporter via encrypted messaging app Signal at +1 (646) 768-1627 using a non-work phone, email at <a href="mailto:mmorris@businessinsider.com">mmorris@businessinsider.com</a>, or Twitter DM at <a href="https://twitter.com/MeghanEMorris">@MeghanEMorris</a>. (PR pitches by email only, please.) You can also <a href="https://www.businessinsider.com/how-to-tip-business-insider-securely-guide-signal-securedrop-2017-6">contact Business Insider securely via SecureDrop</a>.</em></p>            <h3>NOW WATCH: <a href="https://www.businessinsider.com/federal-reserve-zero-percent-rate-dow-dropped-2020-3">Why the Dow plummeted after the Federal Reserve set interest rates at 0%</a></h3>                    <iframe class="bijwplayerclass" src="https://content.jwplatform.com/players/bPY4gJQb-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;"></iframe>            

Flex-space startup Knotel just laid off 30% of workers and furloughed 20% as coronavirus hits the coworking industry

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d79272e2e22af089c5e09e7-2400/20180522weworksanlitun-frontdesk-wide-2.jpg" border="0" alt="WeWork Press Kit - Front desk in Sanlitun" data-mce-source="WeWork" /><p class="source"><span>WeWork</span></p></div><p></p></div></div></p><ul class="summary-list"><li>WeWork is hiring at least 50 people in Edison, New Jersey, to work at a new 200,000-square-foot manufacturing facility, according to job postings.</li><li>The jobs appear aimed at creating a manufacturing operation from the ground up, including roles in technical operations, supply chain management, quality assurance, human resources, and finance. </li><li>In a departure from its focus on technology, the company will make modular glass and aluminum systems.</li><li>WeWork has been preparing to go public, which turned into a rocky process as the company's lofty valuation and corporate governance comes under fire. </li><li><a href="https://www.businessinsider.com/heres-the-latest-wework-news-2019-6">For more WeWork stories, click here. </a></li></ul><p>WeWork has already expanded its business lines from managing trendy workspaces for entrepreneurs to overseeing co-living facilities, a school, gyms, and more.</p><p>Now, the company is gearing up to be a manufacturer of the actual glass and aluminum parts used in its signature interiors, with a 200,000-square-foot facility located 35 miles from its New York City headquarters.</p><p>The company is seeking to hire at least 50 people to work in roles ranging from furnace operator to manufacturing director in Edison, New Jersey, per recent <a href="https://www.linkedin.com/jobs/search/?distance=10&amp;keywords=wework&amp;location=edison%20nj">job postings on LinkedIn</a>. The new hires will work in a new facility with "state-of-the-art" equipment, per the job postings. The company's design aesthetic relies heavily on glass and aluminum to partition rooms.</p><p>Moving into manufacturing represents a big pivot from WeWork's positioning as a tech company that does real estate. The manufacturing plant build-out comes as WeWork parent The We Company prepares to go public, a rocky process that's seen questions about the company's <a href="https://www.businessinsider.com/weworks-neumanns-700-million-cash-out-enabled-by-venture-market-2019-7?r=wework-lp">leadership</a>, <a href="https://www.businessinsider.com/weworks-ipo-filings-show-founder-neumanns-real-estate-family-ties-2019-8">conflicts of interest</a>, and basic <a href="https://www.businessinsider.com/sam-zell-bashes-wework-2019-9">business model</a>.</p><p>The company has been trying to pivot to partnerships with landlords over signing traditional long-term leases, and has also flagged helping other companies design office spaces as a potential way to help narrow wide losses. </p><p><em><strong>See more:</strong> <a href="https://www.businessinsider.com/wework-filing-reveals-how-much-work-becoming-profitable-will-take-2019-8">WeWork lays out its path to profitability - and most of its options involve slowing its breakneck growth</a></em></p><p>WeWork's spokeswoman declined to comment, citing the company's quiet period ahead of its initial public offering.</p><p>The company's <a href="https://www.sec.gov/Archives/edgar/data/1533523/000119312519220499/d781982ds1.htm">pre-IPO filing</a> last month flagged its drive to reduce costs by "vertical integration" - doing more in house: </p><p style="padding-left: 40px;">"Over the past several years, we have been able to achieve efficiencies in our capital expenditures through a combination of greater economies of scale resulting from the increasing size of our global network, vertical integration of our design and construction process and increased use of technology."</p><p>A handful of major real estate developers have tried to better control their supply chain and cut costs through owning manufacturing plants. Related Companies, which is developing the New York neighborhood Hudson Yards, built a wall manufacturer in Linwood, Pennsylvania.</p><p>The practice is rare for flexible office providers like WeWork, which has taken a more asset-intensive approach to its business than its peers. Seeking to own buildings rather than lease them, the company started raising a private equity real estate fund in 2017, eventually wrapping the fund into <a href="https://www.businessinsider.com/wework-ark-fund-to-buy-commerical-properties-2019-5">an investment platform called ARK</a> this spring. </p><p>The CEO of Knotel, a flexible office provider that <a href="https://www.bloomberg.com/news/articles/2019-08-21/steadier-than-wework-knotel-s-pitch-vaults-it-to-unicorn-status">raised</a> $400 million last month at a $1.3 billion valuation, said WeWork's move into manufacturing was unusual. Amol Sarva told Business Insider that "if you're in traditional real estate, it makes sense." A developer like Related, for example, can make its supply chain more efficient by owning a plant and overseeing production instead of buying materials. </p><p><strong><em>See more: </em></strong><em><a href="https://www.businessinsider.com/mutual-funds-that-hold-stakes-wework-are-changing-their-valuation-2019-9r=wework-lp">Mutual funds like Fidelity's famed Contrafund have slashed valuations on their WeWork stakes</a></em></p><p>Sarva said he's focused on innovating in other parts of the design and construction business, which he said is ripe for a shakeup overall.</p><p>"Every part of the office business has been untouched by time," he said.</p><p>But instead of changing the manufacturing process like WeWork's trying to do, Sarva said he's focused on reducing the amount of waste generated by office build-outs. </p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/webinar-headset-ceo-walks-through-successful-series-a-pitch-deck-2019-9">WATCH: The founder of buzzy cannabis-tech startup Headset walked us through the pitch deck that helped him raise $12 million and ink deals with Nielsen and Deloitte</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/pv3zDQUZ-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

Now WeWork wants to be a manufacturer: the coworking company is opening a 200,000-square-foot New Jersey plant to make its signature aluminum and glass walls

<img src="https://static-ssl.businessinsider.com/image/5e7e42792d654f44533116f2-2400/amol headshot.jpeg" alt="Amol Sarva Knotel" /><p class="source"><span>Knotel</span></p><p class="caption">Amol Sarva, CEO of flexible office provider Knotel</p><ul class="summary-list"><li>Knotel has stopped paying rent on some of its huge New York City portfolio of office space and cut off other payments to key partners such as CBRE and Cushman &amp; Wakefield, sources told Business Insider.</li><li>The company's once-surging flex-space business has been hit hard by the coronavirus crisis, which has left tenants unable to occupy workspaces and prompted many to cease payments. </li><li>Knotel's chief financial officer said in an internal email seen by Business Insider that the company is "completely clamping down on any and all payments."</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Click here for more BI Prime stories.</a></li></ul><p>Flexible-office provider Knotel's heavy cost-cutting measures extend well beyond<a href="https://www.businessinsider.com/knotel-cuts-employees-as-coronavirus-hits-flexible-office-hard-2020-3"> last month's 50% staff cut</a>.</p><p>The New York-based company has stopped paying some rent and vendors - and it has a backlog of payments that predates the coronavirus by many months, a Business Insider investigation, which included talking to nine current and former employees and Knotel business partners, found. </p><p>Financial data reviewed by Business Insider shows Knotel had substantially missed sales targets as recently as the fourth quarter of 2019 and had accrued hundreds of thousands of square feet of vacant space months before the economic crisis touched off by the coronavirus began.  </p><p>That may make it especially vulnerable to the downturn sweeping across the flexible-workspace industry.</p><p>Knotel was, until recently, one of the fastest-growing brands in the booming coworking and flex-space field, emerging as a chief competitor to WeWork.</p><p>Covid-19 has upended the soaring sector as small businesses, startups, and entrepreneurs that flooded into flexible workspaces in recent years have shed those locations or have stopped paying rent, leaving companies such as Knotel, in turn, with less cashflow to pay landlords.</p><p>Several sources with direct knowledge of Knotel's 2.5 million square feet of space in New York said the company hasn't paid rent for the month of April at several locations, including spaces at 40 Exchange Place, 5-9 Union Square West, and 61 Broadway. The sources said it is still possible the company could avoid missing the payments by settling the outstanding rent bills before the close of the month.</p><p>The cutoff of money is potentially painful to landlords. The Moinian Group, a large Manhattan property owner, for instance, is both an investor in Knotel and one of its largest landlords, hosting Knotel locations at several of its office buildings, including 545 Fifth Avenue, 60 Madison Avenue, and 90 John Street.</p><p>The landlord's chief executive, Joseph Moinian, declined to comment on whether he stood to lose money from his investment into Knotel's business and whether the company was still paying rent at locations within Moinian's portfolio.</p><h2>Flex-space providers are looking to cut costs as space sits empty</h2><p>Knotel is one of several major workspace brands that have sought to cease hemorrhaging money by cutting back - or abandoning - their rent obligations. </p><p>Convene, a workspace and conference company, is also cutting rent payments it makes to landlords across its portfolio, according to an investor in the company.</p><p>"Convene is working with all landlords individually and on a case-by-case basis," a spokesman for Convene said.</p><p>And WeWork has sought to renegotiate leases in its over 7-million-square-foot portfolio in New York in order to reduce its rent burden, according to<a href="https://www.ft.com/content/78dbfb03-f47d-41f3-9bf6-6696e5ef626b"> media reports</a>. </p><p>Businesses of all kinds have sought to hold back commercial rents as social distancing rules have prevented many from occupying their office space. Landlords, which are currently prohibited by a New York state moratorium from evicting both residential and commercial tenants, have urged office occupants to continue to pay.</p><p>Because of the widespread economic dislocation from the crisis, it is expected that many owners, however, will be flexible with late or discounted payments rather than pursue wide-scale evictions.</p><p>"Given the unprecedented times we are witnessing due to the effects of Covid-19, the Knotel team is focused on balancing the interests of customers, partners, and investors, in efforts to build a sustainable, long-term business," Ivy Chiou, a spokeswoman for Knotel, said in a statement. "We are taking these steps to ensure we are well-positioned for both current times of great crisis, as well as when business returns to a new normal.</p><p>Chiou said the company would not confirm whether it had suspended rent payments, nor whether it was current on its rent in any specific locations.</p><p>Knotel struggled to hit its targets well before the coronavirus hit, its internal financial reporting viewed by Business Insider shows.</p><p>Knotel has <a href="https://www.knotel.com/knotel-blogs/knotels-2019-year-in-review/">said publicly</a> that it had $350 million in annual revenue lined up at the start of 2020. According to internal documents seen by Business Insider, the company had $335 million of annual revenue signed on near the end of the fourth quarter of 2019, $80 million short of its $422 million forecast.</p><p>In New York, Knotel signed just $5.8 million in net new contracts in the fourth quarter, compared with a goal of $51.5 million. Across the 15 cities globally where the company operates, it added about $50 million of new revenue in the quarter, $50 million short of its target.</p><p>Across the 15 cities globally where the company operates, it added about $50 million of new revenue in the quarter, $50 million short of its target. </p><p>Flex-office companies generally saw a slowdown in leasing activity in the fourth quarter, per<a href="https://www.cbre.com/agile-real-estate/Precipitous-Drop-in-Q4-2019-Flexible-Office-Leasing?article=%7bC2C732F9-948B-472A-A1A4-232754D08E7B%7d&amp;feedid=064af4d2-c485-45be-9744-afa7ca45de52"> CBRE data.</a> Much of that industry-wide decline was driven by WeWork, though Knotel's drop in leasing - 70,000 square feet of new deals in the fourth quarter, a decline of 80% from its quarterly activity over the previous year - was much more precipitous than competitor Industrious, which was down 6.5%. </p><p>The leaked financial documents also showed that Knotel had about 500,000 square feet of vacancy in its portfolio in December, a number that is projected to grow to 1.5 million square feet as it takes possession of additional spaces it has committed to lease.  </p><h2><strong>Hundreds of thousands owed to brokerages</strong></h2><p>One current Knotel employee said that the company's legal and finance teams were "combing through the leases to see where we can stop paying rent" so that the company could fund payroll. </p><p>The source, who was not authorized to speak with the media, said Knotel considered payments to vendors, general contractors, and brokers as its last priority, with those payments likely to be deferred for three to six months or longer. The source also said Knotel was evaluating the possibility of extracting itself from spaces by encouraging landlords and the occupants of its spaces to strike a deal directly, with Knotel no longer the middleman. </p><p>"Knotel would get out of an unfavorable real estate deal, the landlord would get a paying client, and the tenant would remain in the space, however without Knotel's workspace management operations," the source said. </p><p>Knotel has also fallen behind on commission payments to major brokerage firms that have arranged leases for occupants to take space in Knotel's portfolio. According to two sources with direct knowledge of the agreements, CBRE and Cushman &amp; Wakefield, two of the largest commercial real estate brokerage companies, are each owed amounts in the hundreds of thousands of dollars. CBRE and Cushman &amp; Wakefield declined to comment on the commission payments. Knotel's spokeswoman declined to comment.</p><p>Another brokerage firm, SquareFoot, is also owed a commission, two sources with direct knowledge of that debt said. One source described the commission as a five-figure sum.</p><p>Stiffing brokerage companies could dissuade those firms from bringing Knotel tenants in the future, potentially dealing a blow to its future growth plans in the city. </p><p>A former Knotel employee, who spoke to Business Insider on the condition of anonymity, said that the company has unpaid bills that total in the millions of dollars, based on vendor negotiations in which they were directly involved. Knotel's spokeswoman declined to comment on outstanding bills.</p><p>One vendor, for example, was owed $500,000 - and their unpaid bill dated from at least last summer, this source, who left earlier this year, said. </p><p>Once, a Knotel employee accidentally copied a number of vendors on an email about vendors Knotel planned not to pay. In most instances while the source worked at Knotel, vendors were eventually paid, at least in part. </p><p>"Most of them at least got paid at least some of what they were owed. That was enough to keep them at bay, and our finance team was keeping track of how frustrated everyone was at them," this source said. </p><p>Knotel's CFO, John Jureller, who was hired into the position in March, wrote in a recent internal email that was viewed by Business Insider that the company was looking at payments to vendors and landlords to try to stabilize its deteriorating financial position.</p><p>"At this time, we are completely clamping down on any and all payments other than our obligations to employees and our contractors / temps," Jereller's email read. "Together with legal, we are carefully analyzing the impacts to landlords, vendors and other statutory payments."</p><p>In a dramatic cost-cutting measure last month, Knotel laid off or furloughed half of its 400-person staff. Amol Sarva, a tech entrepreneur who co-founded Knotel five years ago and pushed the business aggressively to compete alongside WeWork, continued to strike a cheerful tone on his LinkedIn page despite the company's recent setbacks.</p><p>"Knotel is hiring," his page states. "Join us."</p><p>Business Insider previously reported that <a href="https://www.businessinsider.com/knotel-ceo-wanted-to-bury-negative-business-news-layoffs-2020-3">Sarva had sent a company-wide email</a> laying out Knotel's plans to bury upcoming staff reductions by seeking to run a positive news story about real estate's role in helping the community during the coronavirus pandemic.</p><p><em>-Alex Nicoll contributed reporting. </em></p><p><em><strong>Have a tip?</strong> Contact Dan Geiger at dgeiger@businessinsider.com or via encrypted messaging app Signal at +1 (646) 352-2884. Contact Meghan Morris via encrypted messaging app Signal at +1 (646) 768-1627 using a non-work phone, email at <a href="mailto:mmorris@businessinsider.com">mmorris@businessinsider.com</a>, or Twitter DM at <a href="https://twitter.com/MeghanEMorris">@MeghanEMorris</a>. (PR pitches by email only, please.) 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Knotel is scrambling to pay millions in bills that started stacking up before the coronavirus hit, and it's late on payments to some of New York's biggest brokerages

You Searched For "amol sarva" and got 9 results

After the disaster of office-rental startup Knotel last year, its founder Amol Sarva is now back as a VC with a $100 million fund

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Flex-office startup Knotel bragged it was a nearly profitable anti-WeWork. Now lawsuits are stacking up. 12 insiders reveal what happened.

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Leaked memo shows how Knotel's CEO planted a feel-good story and his playbook for burying news about job cuts at the flex-office startup

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A major WeWork rival is expanding rapidly in London just as WeWork's position as the city's biggest tenant is at risk

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The CEO of $1 billion WeWork rival Knotel says the idea of coworking is 'over'

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DriveWealth pitch deck — ADP pilots new twist on paychecks — State Street's return to office

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Flex-space startup Knotel just laid off 30% of workers and furloughed 20% as coronavirus hits the coworking industry

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Now WeWork wants to be a manufacturer: the coworking company is opening a 200,000-square-foot New Jersey plant to make its signature aluminum and glass walls

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Knotel is scrambling to pay millions in bills that started stacking up before the coronavirus hit, and it's late on payments to some of New York's biggest brokerages

Daniel Geiger,Meghan Morris