Kevin Song is a Brooklyn-based entrepreneur who launched the Withco startup, motivated by his parents losing their family's grocery store due to renting the building rather than owning it. This startup seeks to prevent this unfortunate circumstance from happening to other small businesses by helping single-unit renting businesses purchase their properties.
The initial round of equity funding Withco received totaled $30 million. Withco is using this funding to target businesses living in for-sale properties valued at under $5 million, then securing deals whereby Withco will purchase the building and lease it to the business over time. While this may seem like a mere transfer of landlords, Withco ensures that the cost of the lease meets the businesses budget, while also settling on a pre-agreed price to sell the infrastructure to the business in the future. This offers small businesses a large amount of infrastructure security and leeway, leeway in future budget planning, and opportunities to plan for future business ventures.
Business Property-Supporting Startups
'Withco' Helps Small Businesses Secure Their Infrastructure
Trend Themes
1. Small Business Infrastructure Ownership - Withco is disrupting the leasing industry by offering single-unit renting businesses the opportunity to purchase the building through financing rather than rent.
2. Affordable Property Investment - Through Withco's leasing deals for under $5 million properties, Withco is making property ownership more attainable for small businesses.
3. Infrastructure Budget Planning - Withco's pre-agreed purchase price for infrastructure offers small businesses opportunities to plan and budget for future ventures.
Industry Implications
1. Real Estate - Withco's innovative leasing and purchasing program could disrupt the traditional real estate industry.
2. Finance - Withco's financing options for small businesses seeking ownership of their infrastructure could disrupt the traditional lending industry.
3. Corporate Sustainability - Small businesses owning their infrastructure could lead to growth in corporate sustainability through long-term investment in property.