WeWork China Exec Launches Real Estate Startup Studio

Compared to numerous other industries, the property sector has been relatively gradual in its adoption of new technologies. Following his departure this spring from WeWork China, where he served as head of innovation and technology, Dominic Penaloza chose to concentrate his efforts on proptech within the Asian market.

Penaloza is pursuing a dual strategy of startup development and investment through the creation of a “startup studio” named REinvent, with “RE” representing “real estate.” These organizations, also known as “startup factories” or “venture builders,” are characterized by building startups utilizing an internal team. A well-known instance is Rocket Internet, recognized for establishing Lazada in Southeast Asia and Jumia in Africa.

Penaloza, an experienced entrepreneur who previously sold his co-working venture, Naked Hub, to WeWork China in 2018, currently leads a team of 45 professionals based in Shanghai, Taipei, and Singapore. A significant portion of this team previously collaborated with him at WeWork and Naked Hub. The studio’s structure is based around product-focused “squads” comprised of product managers, designers, engineers, and specialists in artificial intelligence, enabling simultaneous work on up to four projects.

To address a sector with established competitors, the founder has also secured backing from prominent investors. REinvent’s investors include JustCo, a leading co-working provider in the Asia Pacific region supported by major Asian property owners like the Singaporean sovereign wealth fund GIC; Frasers Property, a multinational property developer; and Daito Trust, a prominent Japanese real estate company.

REinvent retains complete ownership of the ventures it creates, while the three investors hold equity within the studio itself. The company has not revealed the total amount of funding received from these investors.

These investors also provide valuable strategic resources, as Penaloza explained to TechCrunch in a recent interview. Launched in May, REinvent has already introduced two ventures, one of which is Switch, a platform allowing individuals and businesses to reserve workspace on a per-minute basis, mirroring the model of bike-sharing services. However, Switch operates as a marketplace connecting users with third-party landlords such as JustCo and Frasers, unlike bike-sharing companies that typically own and manage their fleets.

Currently, the marketplace features a growing network of 2,500 desks across more than 20 locations in Singapore, including compact office spaces appearing in shopping centers. This offering comes at a time when the COVID-19 pandemic is prompting a global reassessment of traditional work environments.

“Property companies are currently determining how to respond to COVID-19, how to assist organizations in navigating the pandemic, and how to prepare for future outbreaks to minimize business disruption,” stated Penaloza.

Flexible work pods are also an appealing option for shopping mall owners, particularly in China, as they seek new tenants in response to the increasing influence of e-commerce on traditional retail.

“Even before COVID-19, e-commerce was challenging the conventional retail landscape. Developers in China are exploring ways to repurpose their malls… Many now incorporate food and beverage establishments, experiential stores, cafes, and even co-working spaces,” Penaloza noted.

Penaloza initially tested a concept similar to his on-demand workspace vision during his time at WeWork China, by making the company’s communal areas available to customers without memberships, catering to professionals who utilize spaces like Starbucks for meetings and remote work, but offering a more peaceful setting and improved internet connectivity.

REinvent’s other initial product is SixSense, a software solution for spatial analytics and social distancing monitoring.

“Real estate is often overlooked, but it represents one of the largest industries globally,” Penaloza emphasized. “Proptech in Asia and China is still in its early phases, but it is gaining momentum.”