Investment firm Adventure Capital is poised to cut the ribbon on its new incubator, a co-working space based in Melbourne, where the best and brightest entrepreneurs and start-ups will be cherry-picked to receive seed funding.
The York Butter Factory (named after the building that previously housed a dairy company) will open its doors in the second half of September, when it will start to house a range of businesses and entrepreneurs.
People in the co-working space will specialise in a number of disciplines including: app and web developers, software consultants, video content producers and professional services people, but other niche skills are being sought such as gamification, SEO, and UX/UI.
The pricing is comparable with other co-working spaces: $600/month for a permanent desk and $500/month full-time for hot desks (less depending on the amount of usage).
The co-working element is just the first stage of the York Butter Factory, which will launch an incubator program by the end of the year, according to Adventure Capital co-founder Stuart Richardson.
Co-working is a way to attract high potential businesses, which can benefit from seed investment from angel network Aurelius Digital and VC firm Adventure Capital, Richardson said.
"The co-working space really isn't a profit driven motive," he said. "It's really shown what opportunity there is to activate a space and to really give an opportunity for a group of entrepreneurs who have a common vision to succeed and grow new businesses."
"The incubator program is the opportunity to be able to access high-quality deal flow, which has a higher potential of success when provided with active support and the ability to trial their offerings and pivot rapidly."
The organisation ties together two very popular trends at the moment: co-working and an incubator program. It also has a first-mover advantage.
The concept will fail if good businesses aren't attracted. Price may be a bit prohibitive for some start-ups. Some businesses will be excluded because of the investment focus.
If the concept is proven it could quickly see Adventure Capital establish a monopoly over some high-quality deal flow. Also, the brand could be easily expanded around Australia.
There are plenty of co-working spaces around and there are rumours that other major investors are exploring similar concepts, including industry leader Pollenizer.
York Butter Factory is riding the wave of two increasingly popular trends that are reaching their peak: co-working and incubator/seed accelerators. The first-mover advantage should ensure that it attracts some good talent and investment prospects. Long term, the challenge will be to convert the early stage goodwill to carve out a space in the start-up ecosystem.