From Coworking Space to Unicorn Status
At the time Davis Moore (“DM”) was engaged in 2015, Pendo was generating significant interest from capital investors, but struggled to manage a growing company within their shared office environment. DM found a unique space in Downtown Raleigh’s Warehouse District that at the time offered substantial room for growth.
Shortly after occupying the new space, Pendo completed two funding rounds that led to an employee growth rate far beyond initial projections and leadership realized the company would be out of space long before its lease expired. DM introduced a strategy to find new space to accommodate growth for continued talent recruitment, but also deliver the flexibility needed as a startup. To complete this transition, Pendo also relied on the DM team to find a solution to offset the remaining lease obligation at its current premises.
With a $50MM Series D round in the fall of 2018, it was clear that Pendo would again need significant room for growth earlier than anticipated in a market of limited options.
DM worked closely with an incentives partner and ran a process to align real estate needs with a potential state incentives award. Pendo was awarded ~$10.8MM from North Carolina state and local governments for a commitment to create over 600 jobs.
DM helped Pendo run a process to identify programming requirements, leverage the market and build a case for board approval for its new headquarters. Through this competitive process, DM identified a new development in Downtown Raleigh with out of market ownership that was eager to land a nationally known startup as an anchor tenant to help brand and better position the project.
Pendo will have an innovative space built out to their specifications in a landmark location with city views and premier building signage. The new space will allow continued growth with multiple expansion options within the building. Since the term of their lease is below-market considering the concessions realized, Pendo has the flexibility they need to stay nimble and make changes as the company grows. All while operating in a first-class space attractive for recruiting top talent and creating a unique company culture.