New Yorkers are always on-the-go, thinking about work, rushing to the next location, and bombarded by tons of information and ads on every street corner. So that period of transition between work and home is often rushed, and its essential for every urbanite to get those relaxing, “me” moments. 3DEN is the experiential retail and hospitality place that is creating the perfect place for people to relax, focus, enjoy food or just simply time for themselves in 3DEN’s nature-inspired design, which is launching its first location in Hudson Yards.
AlleyWatch interviewed founder and CEO Ben Silver about creating the second generation of the third place.
Who were your investors and how much did you raise?
It was a seed round of $2M, co-led by b8ta and Graphene Ventures, with additional participation from Colle Capital Partners, The Stable, JTRE, InVision CEO Clark Valberg, Target’s former Chief Strategy and Innovation Officer Casey Carl, Firebase founder Andrew Lee, Idea Farm Ventures Cofounder and The Wharton School Professor David Bell, and executives from Cushman Wakefield and CBRE.
Tell us about the product or service that 3DEN offers.
3DEN is what we call the “second generation of the ‘third place’ — the destination where you make the most of your time between home and work (or anywhere else). 3DEN combines the disparate offerings of coffee shops, meeting spaces, hospitality amenities, and experiential retail into a wholly-new and unique space that meets the needs of your in-between moments during the day. A nature-inspired design permeates the entire space, fostering ease and focus, and creating a haven for guests to escape and recharge.
What inspired you to start 3DEN?
3DEN was inspired by the need to address inefficiencies within physical space, retail and public space. The amenities and experience that 3DEN provides have previously only been available through exorbitant membership fees (like private clubs or gyms) or contingent on the customer having to purchase products. Now, we’re providing it through a convenient, pay-as-you-use model.
How is 3DEN different?
Never before have the disparate offerings of coffee shops, meeting spaces, hospitality amenities, and experiential retail been combined into one convenient location. 3DEN is a first-of-its-kind space and experience for consumers.
What market does 3DEN target and how big is it?
3DEN targets the busy urban individual — anyone who needs a moment of respite in their day to catch up and take some time for themselves. There’s no defined market size for 3DEN. It’s truly for anyone who feels they need a space to refresh for the in-between moments in their day.
3DEN targets the busy urban individual — anyone who needs a moment of respite in their day to catch up and take some time for themselves. There’s no defined market size for 3DEN. It’s truly for anyone who feels they need a space to refresh for the in-between moments in their day.
Why open the first location at Hudson Yards?
Hudson Yards will be a destination for both New York natives and those visiting the city — making it a perfect location for 3DEN to cater to our target audience of on-the-go urbanites. We’re excited to be part of a new development that will be a destination for locals and tourists alike, allowing us to serve a large audience of people looking for respite from the hectic nature of the urban day
What’s your business model?
3DEN’s business model is both consumer-and-business-facing. When guests visit the space, they pay $6 for every 30 minutes and have the option to make additional purchases from our curated offerings. That’s where our B2B model comes into play — we partner with brands to offer them new avenues for selling and showcasing their products. Brands pay a flat, monthly fee to use our retail space, and then they keep 100% of the ensuing profits.
What was the funding process like?
Given this is was my second fundraise, I was aware of the hurdles that come with fundraising. Even so, raising on the back of a presentation is always difficult, and even more so with the risk-averse nature of funding physical things.
What are the biggest challenges that you faced while raising capital?
The chicken and egg problem. Most software companies are able to spin up MVP’s and get traction before funding. We weren’t able to do that, which made it difficult for some investors to get comfortable with the investment opportunity even though they loved the concept.
What factors about your business led your investors to write the check?
3DEN’s investors were inspired by the way we blend together a variety of different industries into one convenient and easy-to-use space. Our fresh approach to creating a curated space that accommodates a wide variety of needs excited potential investors.
Our investors have extensive knowledge of the retail and technology landscapes to help build strong brands that disrupt the status quo. We’re incredibly lucky to have them as partners.
What are the milestones you plan to achieve in the next six months?
In addition to launching in Hudson Yards on March 15, 2019, we are currently negotiating to open four other locations in New York City later this year.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Be persistent. There are always options. If something doesn’t work out there’s always another option, but it takes persistence to do that. Most of the great opportunities only get uncovered when you’re scrambling. Money is an enabler, but money doesn’t execute. Even without capital, you can still execute, but it takes persistence.
Be persistent. There are always options. If something doesn’t work out there’s always another option, but it takes persistence to do that. Most of the great opportunities only get uncovered when you’re scrambling. Money is an enabler, but money doesn’t execute. Even without capital, you can still execute, but it takes persistence.
Where do you see the company going now over the near term?
We plan to open more locations throughout New York as the year progresses, and eventually create a 3DEN network across the country in the long term.
What’s your favorite restaurant in the city?
Good question. I actually haven’t been in the city long enough to have a favorite yet as I like to go to new places each time. Send me recommendations!
