Switchyards – the members-only “neighborhood work club” – has received a $5 million capital investment that will allow the Atlanta-based company to open 200 new clubs over the next five years.
The investment is led by Bullpen Capital, joined by existing investor Cercano, and with participation from Overline, according to CEO and founder Michael Tavani.
Since its start in 2019, Switchyards has opened 15 work clubs across Atlanta, Nashville, and Charlotte. Its four newest clubs have sold out memberships within minutes of going live, including the most recent Atlanta location at the Biltmore in Midtown.
Tavani told Rough Draft that by the end of 2024, Switchyards will double its member base and open 10 more work clubs for a total of 25 and more than double revenue while expanding to new markets. The company also plans to quickly grow its marketing and launch teams this year while investing in product innovation to drive further growth, he said.
“We plan to open these new clubs in the Southeast, keep it close to home,” Tavani said. “We’re scouting out great neighborhoods and interesting buildings.”
Dallas and Houston, TX are two of the large markets Switchyards is eyeing for expansion, but Tavani said smaller markets like Chattanooga, TN and Greenville, SC are also on the radar.
Tavani stressed that Switchyards’ growth and popularity has soared because it has eschewed the “co-working” label.
“The five-day office work week is dead,” he said. “Switchyards is a complement to your home and office. For the first time in history, over 65 million Americans are working at least partly remote. Work has changed for good.”
And unlike traditional co-working spaces, Switchyards locations are open 24 hours a day, offer fast internet, and unlimited coffee and tea for $100 per month.
