Munich Startup: As we the last time in 2021 with Shquared When we spoke, you said that you wanted to expand beyond Munich. Were you able to achieve this goal?
Shquared: Yes, we've already made some good progress here. Our platform is now open to all postcode areas in Germany, and the first spaces in Frankfurt, Cologne, and Berlin have already been advertised. However, we are particularly pleased about our first "City Portal" pilot project with the Cultural Department of the City of Göppingen, with which we are launching our own city portal for the provision of Areas for creatives and cultural workers on our platform.
City portals for better overview and regular cash flow
Munich Startup: City Portal sounds exciting – is this a new direction for your marketplace?
Shquared: City portals are actually a logical extension of our existing services. We offer municipalities the opportunity to create their own personalized portal – a subpage on our marketplace. There, they can centrally list all divisible and usable spaces – in this case, for the cultural and creative scene. Conversely, they can post requests, as they have done on our marketplace.
The Department of Cultural Affairs finances the creation of the portal and supports these subsidized uses by covering the monthly maintenance costs. This saves the cultural professionals almost the entire service fee that would otherwise be charged for arranging a booking. The great thing is that the spaces offered on the city portals are, of course, also discoverable and bookable on the platform for anyone else interested. We intend to gradually expand these city portals and thus rapidly increase the number of spaces available throughout Germany.
At the same time, we are exploring the possibility of using shared space to serve the logistics industry's needs for micro-hubs via our marketplace. We are a partner of the "Mobile Future Munich" alliance, supported by the Free State of Bavaria, and are working with, among others, the City of Munich's Mobility Department, the European Institute of Innovation & Technology (EIT), and the Chamber of Industry and Commerce (IHK) to develop the planned logistics space marketplace for Munich.
This means that in addition to the city portals, we also remain on the topic logistics in exchange with municipal committees.
Shquared: Area partnerships remain a matter close to our hearts
Munich Startup: Until now, anyone could share space via Shquared, even without a city portal – is that no longer possible?
Shquared: But of course – and this remains a matter close to our hearts – we want to continue to offer site operators who lack a supporting local authority the opportunity to exploit the potential of their space sensibly and efficiently. And founders, creatives, and entrepreneurs everywhere should have the opportunity to find the perfect space partnerships.
Therefore, the city portals are not a new direction, but rather an addition that will help the marketplace's offerings grow faster and become more attractive. In Munich, we're already well on our way. New space-sharing companies are now regularly finding their way to our platform, advertising their spaces, or sending matching requests. Incidentally, this shows just how easy space-sharing on the marketplace works. our new video.
Munich Startup: And how are things looking financially for you?
Shquared: As a startup with stewardship ownership, we strive for solid growth and have enshrined the consistent reinvestment of all profits in the company's purpose in our articles of association. To this end, we have even transferred a veto share to a foundation that acts as the guardian of our promise. Therefore, we are not available to investors with an exit strategy. This naturally also brings with it recurring financial bottlenecks, and we are proud that we have been able to counteract these with creative project approaches and further developments over the past four years. We also have a fantastic network that supports us through these developments and actively supports us (not just financially).
Investors wanted, but not for an exit
The development of the city portals will secure us regular income from monthly service and hosting fees starting this fall. In 2024, we plan to cover our expenses with additional city portals through regular, predictable income and use any surpluses to increase the visibility of our marketplace and further expand both of Shquared's pillars. In order to quickly tackle all the tasks ahead, despite the positive sales forecasts, we are also looking for investors to finance targeted measures, such as the marketing and visibility campaign planned for 2024, along with the additional hands and minds needed for our team.
Munich Startup: There have been some changes in the (founding) team since launch. What lessons have you learned during this process?
Shquared: Since our founding, there have been additions and departures within the team, and these changes have brought challenges. Our firm belief in our vision and our desire to further develop this marketplace has been a great help. Openness—both within the team and with our partners—is a key aspect of this. Concerns, worries, and dissatisfaction must be expressed and taken seriously.
A solution-oriented mindset and respect are fundamental to the process. However, we've also found that we thrive when we keep moving and don't spend too much time discussing unpleasant challenges. As difficult as personnel changes are, they offer opportunities for new structures, responsibilities, and personal growth—we've all experienced this in our own roles during this time.
Giving and taking, exchange and support are valuable
Munich Startup: What role has the Munich ecosystem played in your journey so far?
Shquared: Munich is and remains our home base, the place where we are most familiar, where we are networked, and where we have gained and continue to expand our multi-use expertise. The Munich network is diverse. There are numerous startups and founders as well as large and experienced players in the fields of multi-use and interim use. A very active startup scene is supported by committed bodies in the city, local politics, academia, and business, with whom we continually engage and collaborate. This give-and-take, the exchange, and the support are absolutely fantastic and valuable.
Munich Startup: What milestones are you working towards next?
Shquared: By the end of next year, we aim to have at least ten city portals on our platform and use this revenue to launch a marketing campaign for space sharing with Shquared. It would also be great if we could hire more dedicated colleagues, as there is so much to do and we still have many ideas that could make space sharing even easier and more attractive.
