TORONTO, ON, January 16, 2019 – Spacefy Inc. (“
In response to investor questions arising from Russ Patterson’s appointment, the Company is pleased to share the following question and answers from Russ:
What’s the business model?
What type of spaces are listed on
We have everything from purpose-built creative industry spaces such as
What was your role at eBay?
I was lucky enough to have a very long run at eBay – over 15 years in fact. I started out as a Canadian product
What attracted you to join Spacefy?
First and foremost, Spacefy’s mission is extremely cool because it revolves around helping creative people to do creative things. And I love the way the marketplace is taking some directions the founders could not have predicted. It turns out that a space inventory that helps creative people do creative things also helps ordinary people to do ordinary things in amazing, unexpected places. It appeals to me that Judeh Siwady, Spacefy’s founder and first CEO, is sticking around to help me as he has been appointed as Chief Operating Officer by the Board of Directors. It’s nice to have an orderly transition of leadership. I spent a couple months getting to know Judeh and his team before I agreed to join, and I think we make a terrific team. Then there’s the potential of the business. We’re still an early stage company, so when you compare our valuation on a per space basis to some of our peers, it gets me pretty excited. I mean, you’ve got AirBnB at something like $8k per space, Peerspace at $7k, Breather at over $500k per space… These companies are all a little different from us of course, but the point is that there is tremendous value to be unlocked in peer to peer space rentals. With Spacefy sitting at just over $2k per space, it’s a compelling comparison. AirBnB has led the way, and now you’re seeing lots of niche players for commercial space rentals who are doing exciting things. That’s a nice wave to be part of.
I also love that Spacefy is a marketplace positioned in the sharing economy, like Uber and AirBnB. At their roots, both of those businesses were founded around the idea of helping people to monetize unused resources. There’s something very elegant about that, and it reminds me of what originally attracted me to join eBay many years ago, when they were still mostly a C2C auction platform for used goods. We were keeping stuff out of landfill, creating online communities, unlocking a ton of value for shareholders, and having a blast doing it. Spacefy holds that same excitement for me as the early days at eBay. It gives me an opportunity to pull together and apply everything I’ve learned in my career – from marketplaces to technology to business management and leadership. I also get to apply my education and personal interests in a way that makes me feel this job was tailor-made for me. In the late eighties, I was an aspiring filmmaker attending Ryerson Film School. I remember trying to negotiate with business owners to let me shoot my 16mm films in their venues. It was very time-consuming, and it took a lot of shoe leather. Everyone on the Spacefy team has a deep interest in art, music, performance and film. This is a business that is fun and rewarding for us. Art can happen when creativity, content and context converge in interesting ways. At our best, we like to think our platform helps make that convergence happen.
Today, our deepest inventory of spaces is in Toronto and New York, and we’re growing in Los Angeles, Atlanta and Vancouver and a few other North American cities. Once we’ve honed our playbook, it will be exciting to expand to other international markets. I ran a bilingual eBay.ca website on an international eBay platform for many years, and I learned a lot about how to set up your customer experiences, platform and processes for international scale. We’re building local with global in mind.
What’s the opportunity for Spacefy?
We think it’s big. In 2017, the creative industry spent close to 3 billion on space rentals in North America alone. And that’s just creative industry. On top of that, you’ve got the spillover that is happening organically into sectors like fitness and yoga classes, and events – both corporate and private, and that’s super-interesting to me. The breadth of inventory that
What’s the most unusual Spacefy booking to date?
The first-ever booking on the platform was a self-hypnosis class. I didn’t even know that was a thing
What are your priorities for 2019?
I took some time to work with the team on strategy and culture before I joined, and our IPO is complete, so now we’re focused and ready. The mission for 2019 is pretty clear. We need to apply design thinking to keep evolving the customer experience in a way that is grounded in real business and customer insights. We need to continue to develop our
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This news release includes certain “forward‐looking statements” under applicable Canadian securities legislation. Forward‐looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to estimates of the market opportunity size for