The co-founder of shared office start-up Second Home is stepping down after costs over ran at the company’s first US site in Hollywood.
Sam Aldenton, who established the business in 2014 with Rohan Silva – a former advisor to David Cameron – is leaving the firm, Sky News reported.
The co-working company is in the process of finalising a £9m capital injection from shareholders, on the basis of a “down-round” meaning the firm’s valuation will be lower than the last time it raised funds, the broadcaster said.
The budget for the company’s new site in Hollywood is understood to have ballooned, prompting the funding round. Alderton was reportedly responsible for the US venture.
Sources told Sky News that the funding from existing shareholders was promised on the condition that there was a shake-up of the firm’s management.
The news comes at a challenging time for the co-working sector, following reports that Rocketspace has closed its London office amid plans to exit the UK.
Meanwhile, co-working giant Wework is planning to axe staff numbers after abandoning plans to go public in September.
Last month Wework’s UK staff were warned that their jobs were at risk under the company’s rescue plan.
In October City A.M. revealed that London-based flexible office space group Central Working had collapsed into administration.
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