The Future of the Workplace is Flexible
Convening with CEO and co-founder Ryan Simonetti
By Steve Murray and Patrick Conroy, Partners at Revolution Growth
In 2018, Revolution Growth led an investment in Convene, an emerging leader in flexible work, meetings and events, and premium venues. When we backed the company, we were betting on a reimagined future of work. And by all measures, the company was executing well: growing revenue, increasing profits, and an expanding geographic footprint to serve its blue-chip customer base. But no one could have predicted what would happen just a couple of years later. Pandemic-induced office closures led to nearly impossible circumstances for a startup focused on events and coworking spaces.
Yet, last month Convene celebrated a major and hard-fought victory: a recapitalization plan led by Hudson’s Bay Company (a retail and real estate holding company giant that owns, among others, the storied Saks Fifth Avenue brand) and Ares Management. HBC plans to install Convene facilities in traditional urban office towers and suburban settings, serving people everywhere who are ready to shift from work-from-home to work-near-home. The combined entity is expected to be the largest premium flex space operator across the US, Canada, and Europe — providing companies with premium hospitality and the hybrid technology they need to grow.
As the pandemic fades and companies call workers back to the office, events and third workspaces (beyond headquarters or home) are prime for a comeback. Particularly, as employers have re-evaluated their need for serious real estate. From the outside looking in, the timing of the HBC deal couldn’t be better. But Convene’s journey to this point was circuitous and filled with countless roadblocks. Competitors failed, valuable employees were let go, and locations temporarily closed. Many times, optimism would be dashed by another Covid-19 variant that would wipe out bookings for the quarter.
As board members, there were many hard conversations and no easy answers. This was, at the time, one of the most complicated situations in our portfolio. We had to address health and safety issues, closed buildings, canceled contracts, loan compliance issues, and significant layoffs as the business shut down almost overnight. CEO and co-founder, Ryan Simonetti, had to negotiate with employees, customers, lenders, and landlords. We aren’t the type of partner that agrees with everything and rubber stamps decisions, but our support for Convene never wavered. We leaned in during weekly board meetings and reinvested when others left the cap table. From day one of our partnership, we believed in Ryan’s vision. And from the beginning, he always appreciated a fundamental truth about the relationship between startups and VCs:
Here’s what Ryan had to say more recently: “Revolution Growth is an incredible partner. Their advice and support helped guide me through one of the most challenging times I’ve faced as an entrepreneur and CEO. Together, we navigated a tremendous amount of uncertainty while never losing sight of the massive opportunity in front of Convene. It’s easy to show up when things are good, but the best partners are there for you when times get tough.”
Ryan saw worker preferences changing and a hybrid world emerging. His goal of creating beautiful spaces with top-tier amenities and award-winning design is helping forward-looking companies attract and retain talent. Today, despite all odds, Convene is poised for an exciting new chapter. We attribute that success to the grit and determination of the company’s leadership team. The future of the workplace is flexible, and Convene is at the forefront of this fundamental shift.
