The two-year-old Boulder-based startup recently closed a $3.8 million round of equity funding led by Boulder-based Foundry Group. Boulder-based Bullet Time Ventures and California-based Draper Associates also participated in the round along with a new PivotDesk investor, South Carolina-based The Iron Yard.
PivotDesk has now raised $7.3 million in venture funding.
PivotDesk chief executive David Mandell said the new infusion of cash will go mainly toward marketing in the new cities and helping fund some yet-to-be-announced new initiatives. Some of the new markets already have a lot of inventory, while some are more sparse and will take some nurturing, Mandell said.
PivotDesk helps match businesses or landlords who have extra office space with startups or small businesses that need new digs but also require more flexibility than a long-term lease would allow. Landlords can list their space on PivotDesk for free. Once a deal is signed, PivotDesk collects a 10-percent monthly commission from the landlord.
PivotDesk has 20 employees, mostly in Boulder. While the company has staff in its other initial markets like Boston, New York, San Francisco, Denver and Portland, Ore., Mandell said he doesn’t anticipate adding much full-time staff outside of one or two people with the new round of funding.
“This round is really about growth from a market perspective, not hiring staff,” Mandell said.
Mandell said that in the company’s early stages, a lot of effort was needed in growing the PivotDesk brand, which is why the original cities had full-time staff.
“Luckily we’ve gotten to the point that our brand is quite strong,” Mandell said. “The awareness is much stronger. We’re hoping right now that we don’t need full-time people in each of (the new) markets.”
Privately-held PivotDesk does not disclose revenue, but the new growth and funding indicates things are looking up for the young company.
“We’re very happy with the growth so far,” Mandell said.
The full list of new cities added by PivotDesk includes: Atlanta; Austin, Texas; Boise, Idaho; Charlotte, N.C.; Chicago; Cleveland; Dallas; Detroit; Houston; Kansas City; Las Vegas; Los Angeles; Louisville, Ken.; Miami; Minneapolis; Omaha, Neb.; Phoenix; Pittsburgh; San Antonio; San Diego; Seattle; St. Louis; and Washington D.C.