Ed Trashes Co-Working Spaces




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ORIGINAL POST

Posted by Ed 9 days ago
Following an enormous expansion into Hong Kong (fueled by the gargantuan-esque surge of cash that is bubbling around the world and being invested into 'exciting' businesses without any chance of ever being profitable)..... co-working spaces are massively oversupplied in Hong Kong and are unable to fill their desks.

After all there are only so many 'entrepreneurs' who do not have the cash to rent a proper office and who live to hang about drinking low fat lattes and playing ping pong all day long ....

And now the chickens are coming home to roost.

Chinachem has launched a lawsuit against KR Space for HKD500,000+, a co-working outfit that walked away on a lease for 5 floors in a Chinachem building in Wanchai...

KR Space raised USD92M in funding just over a year ago ---- in what is likely to be their last round of financing .... before they bite the dust....

And here we have a most ridiculous statement from the CEO TheDesk :

“It is a bit more difficult to make money from this business model than investors and operators thought, and now we see funders showing less interest in the sector. Although, they are not backing off totally,” said Lau.“[Co-working’s] money-burning model needs at least another few years for it to be profitable in Hong Kong.

Interpretation --- this business model is one of burning more money --- leasing more space --- then raising more money --- burning through that... then leasing more space (that sits half empty).....

There is nothing new here (Regus Servcorp etc... have been doing this for years...) --- these companies only exist as the beneficiaries of a massive Ponze ..... invented in DelusiSTAN and funded by DelusiSTANIs....

However the Ponze is colliding hard against reality --- no Dorothy investors from DelusiSTAN will not pour money down the gaping black hole forever even if there is a near limitless supply of money .... Nope ... they will cut their losses and like good DelusiSTANIs go in search of another mythical unicorn that spews hype and bullshit from its back end....


https://www.scmp.com/property/hong-kong-china/article/3006281/hong-kong-co-working-space-too-crowded-some-operators-may

COMMENTS

Ed 9 days ago
And here we have the Holy Grail....

Identify the wave early ... (or just be a true believer in the hype).... jump in ... pray for an IPO.... cash out and leave the DelusiSTANIs holding the bag of soft dung.... and scooping their entrails into a plastic bag before the dog gets wind of the free meal laying on the floor.....

I give you ... the LYFT IPO:

https://hongkong.asiaxpat.com/forums/hong-kong-property-finance/threads/2deea5e7-4b3a-43cb-b0b6-d7acb14a1197/lyft+ipo++/

Ed 9 days ago
Alas.... this is true genius....

When your demographic is a groups of very hip 'entrepreneurs' (with nothing in common except that they want to be rich and they think a co-working space is the magic elixir) gathered together in really fun high-school lunch-table-like environment .......

.......that serves up organic lattes gently massaged and stroked.....then violently ground.... from exclusive coffee beans (grown and flavoured using a special mixture of composted dung supplied by Kim Kardashian, Paris Hilton and Justin Bieber and touched by fairy farts) flown in on a private jet from a remote corner of the earth...

You inevitable run into problems aka --- the people who show up at noon (after a big night out at Dragon-I with the other hip and very awesome 'entrepreneurs' they met at the co-working space)..... clash with those very few individuals who are actually trying to make something happen...(or at least pretending to)

The late risers inevitably want to chat about the delectable models who prostituted themselves for the free canapes deployed to entice them to attend the disco house of dancing.... this chatting inevitable is interspersed with comments such as 'I am the coolest... I was voted most awesome in high school' then followed by a massive food fight....

https://hongkong.asiaxpat.com/forums/hong-kong-property-finance/threads/9d97ff63-4512-45c1-b3ef-db72c49a5491/wework+offices+-+27like+being+back+in+highschool27/



As you can imagine.... that pisses off the wanna be Steve Jobs (or on a much lower and somewhat pathetic level .. the aspiring Eds...) who are prepraring to shake the world...

This.... friction ... can lead to the half empty co-working spaces losing paying customers leaving behind what essentially becomes a frat house ... filled with rambunctious maniacs who rush to the toilets every twenty minutes to amp themselves up on .... illegal substances???


Hence we have a grand idea that kills many birds with TWO stones.... I give you .... HOOTERS CO-WORKING SPACES......

This keeps the 'hip' people who are 'all about having fun' entertained... keeping them off the backs of those who are trying to work.... And this leads to .....Ohhhhhmmmmm ... shanti (where's my energy crystals????) we have peace and serenity.....

This is not a joke.... this is real:


http://fortune.com/2018/03/27/hooters-coworking-space-wework-hot-desk/

Ed 9 days ago
Welcome to your new co-working space fellas! (clearly this is unlikely to appeal to anyone but lads...)


https://www.ampedasia.com/wp-content/uploads/2018/03/HOOTERS_CD4-1024x683.jpg

Ed 8 days ago
While on the topic of sure to fail businesses.... let's revisit this take-down of 'businesses' that are valued at billions of dollars... but have never earned a dollar of profit.... and almost certainly never will.....

Welcome to the new paradigm ... where he who loses the most money .... gets the highest valuation!


https://hongkong.asiaxpat.com/forums/hong-kong-property-finance/threads/1b761e35-af95-4b00-8f78-c4b6c8e9dc1a/here+we+go+again3a+tech+bubble+20+but+22this+time+it27s+different22/


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