Vienna, October 3
Co-working space sektor5 will close its doors November 30, 2017. Started in 2010 and stretching 600m2, sektor5’s physical space for early-stage start-ups will cease to exist. Accelerator program 5starts will continue to manage its portfolio under the sektor5 brand.
Why pull the plug?
There is no real funding available for ideation stage start-ups, which made 5starts — with its non-conventional selection procedure (no pitch deck, no motivation letter) and non-rigid program — a difficult sell. That and projects with bigger promotion budgets made the 5starts team decide to rather pull the plug, regroup and support individual start-ups.
Following our own advice — to iterate on fundraising approach and finally change direction when there’s too little traction — 5starts will not commence a new batch but rather manage its past investments and sektor5 co-working will close its doors. This decision is the result of exploring every possible opportunity (really) and it is final.
What changes for sektor5 co-working members?
Until mid-November, very little. sektor5 stays sektor5 just without formally accelerating start-ups through the 5starts brand. Starting mid-November sektor5 members will move into co-learning and co-working hub Markhof in the 3rd district. sektor5 is convinced its members will find their new open and free development space there. Rochuspark will also take over some of the services sektor5 offers its members.
Despite 5starts not reaching its fundraising goal, 5starts alumni companies continue to book successes. You’ll be able to follow their progress right here on Medium.
Personal reflections by sektor5 Founder and Managing Director Yves Schulz, as well as Floor Drees you find on their channels (Yves).
Thank you team members old (you know who you are) and recent. Thank you to private & public partners, members, ‘our’ start-ups, program managers and trainers. Thank you Stefan Leitner-Sidl and Michael Pöll (Konnex; Markhof) — you have been here before us and you’ll be here for years to come.
To everyone else:
In October sektor5 will still host TechStars Fireside Chat and Office Hours (register to join here) as well as the regular meetups and AustrianStartups Stammtisch.