Stand Raises $40M to Support Return to Office

The Evolving Workplace and New Stand's $40 Million Funding

As employees increasingly return to office environments in the coming months, organizations are facing the challenge of creating spaces that are both comfortable and appealing.

One company addressing this need, aiming to alleviate the transition for millions of workers from home comfort to office life, has recently secured new funding to further its objectives.

New Stand Secures Series B Funding

New Stand, a New York-based company, has announced a $40 million Series B funding round. This financing was spearheaded by Brookfield Property Group, a leading commercial real estate owner in the United States.

Existing investors, including Maywic, Fantail Ventures, and Raga Partners, also participated in this round, bringing the company’s total funding to over $56 million since its establishment in 2015.

Reimagining the Newsstand Experience

New Stand presents a modern interpretation of the traditional “newsstand” concept.

The startup has developed a smart vending system, featuring a contemporary design, that can be deployed in diverse locations. These include office lobbies, company floors, hotels, college campuses, and airports.

The company’s initial location was situated in Union Square subway station in New York City.

Combining Physical Presence with Digital Convenience

Over time, New Stand has integrated its physical locations with a dedicated mobile application. This app provides users with convenient access to essential items – such as snacks, books, and personal care products like umbrellas or pain relievers – alongside “location-based media.”

Furthermore, the company intends to collaborate with businesses to utilize its platform for internal communications, fostering a more engaging and enjoyable experience.

Introducing New Stand at Work

With the launch of New Stand at Work, a workplace amenity, the company is making a significant push into the office sector.

It’s logical that Brookfield, a major commercial landlord, would invest in a company focused on enhancing the experience for tenants and their employees.

A "Day Improvement Company"

TechCrunch interviewed co-founder and CEO Andrew Deitchman regarding the new funding and future plans.

Deitchman describes New Stand as a “day improvement company,” dedicated to simplifying and enriching people’s daily lives.

“We ensure access to necessary items, while also offering curated products that we believe customers will appreciate,” he explained. “Our shops serve as convenient access points, complemented by an app that delivers content and enables users to earn points and rewards.”

“Essentially, New Stand is a media and technology company leveraging convenience as a gateway to people’s lives, aiming to make each day a little better,” Deitchman added.

Shifting Focus to Enterprise Solutions

New Stand is transitioning from a primarily consumer-focused business to an enterprise-level provider.

“We can address fundamental needs while simultaneously cultivating deeper engagement,” Deitchman stated. “For employers seeking to connect with employees, or landlords aiming to improve tenant relations, we can facilitate those connections.”

Expansion Plans and Future Growth

The company intends to allocate the new capital primarily towards expanding its presence into new locations, including offices and other spaces.

Currently, New Stand operates in approximately 20 locations.

Plans also include the development of “new engaging services and formats” and “growing and densifying its distribution network.”

Brookfield Properties' Investment Strategy

Brookfield Properties plans to “further activate” its properties in New York and beyond with New Stand’s offerings, aligning with its investment.

Ben Brown, managing partner and head of the U.S. office at Brookfield’s Real Estate group, highlighted that Brookfield had already partnered with New Stand at Brookfield Place New York, both as a tenant amenity and within its own office space.

“In both instances, New Stand has delivered an enhanced experience with demonstrable benefits,” he shared with TechCrunch.

The Value of Integrated Physical and Digital Experiences

Brown emphasized that, as one of the largest commercial real estate owners globally, Brookfield is particularly interested in investing in companies it utilizes, recognizes the value of, and can assist in scaling.

He noted that the combination of New Stand’s physical presence and media platform has enabled Brookfield to increase engagement with both its tenants’ employees and its own workforce – a goal shared by all landlords.

“Attracting, retaining, and motivating employees remains our top priority, and this has become even more critical as companies strive to make the office a competitive alternative to working from home,” he concluded.