You Are a Product of Your Environment | Duncan Logan of 9Zero

What we talked about.

In this episode of the Sunny Ray Show, Sunny Ray talks with Duncan Logan of 9Zero about how the spaces we choose shape what we build. Duncan, a lifelong entrepreneur who loves the zero to one stage, explains the idea behind 9Zero, a club, workspace and event space for startups working on climate change, and connects it to homophily, the tendency of people to cluster with those who share their passions. He looks back at Rocket Space, which he started in 2011 and which housed early Uber, Spotify and Flexport teams, and describes what he learned about competition and community. He also discusses why he sees no Silicon Valley for climate, how 9Zero's memberships work more like a gym than a fixed desk, and why he believes co-working and flexible office could one day rival the US hotel industry. Duncan closes with his plans for climate hubs in San Francisco and New York and the referral-driven network effects powering growth.

Duncan Logan explains why your environment shapes your success, and how 9Zero is building a Silicon Valley for climate founders.

The questions, and the answers.

What is 9Zero and what problem are you solving?

I'm an entrepreneur who loves the zero to one stage. 9Zero is a club space, workspace and event space purely for venture-style startups solving climate change. It's built on homophily, birds of a feather flocking together. You want to be around people who believe what you believe, where your obsession is the norm.

What did you see in the rooms at Rocket Space that outsiders never saw?

I started Rocket Space in 2011, before co-working existed on the West Coast. I cherrypicked the best funded tech startups, including Uber with Ryan Graves and a five person team, Flexport, Spotify, Kabam and Supercell. Together they became a melting pot where everyone tried to keep up with each other. Competition gets the best out of people.

What broke Rocket Space, the model or the moment?

I wouldn't say I invented office as a service. I just bundled real estate, with design, furniture, utilities and Wi-Fi in one desk price. We raised about 350 million and expanded to China and Europe. But the business had an Achilles heel in margin, and it was hard to get consistent high margins and defensibility.

Climate has no Silicon Valley. What does that change about how you build a network?

At Rocket Space, competitors in music, crypto and gaming all wanted to sit together. We asked what if we built that on purpose for one industry. We chose climate because the data is unavoidable. There's no hub for it like Hollywood or Silicon Valley, so we wanted to build one and help more entrepreneurs succeed.

Why is community the product rather than the amenity, with memberships starting around $215 a month?

After Covid, many people work from home 10 to 20 days a month but want somewhere to come in a day or two a week. So we priced for them. It works like a gym membership. Most people came in about five times a month, so the membership allows seven visits, and it averages out fine.

Can you make the case that co-working will be larger than hotels?

Co-working and flexible office are about 2.3 percent of US commercial real estate today, dominated by names like Regus, Spaces, WeWork and Industrious. Analysts expect growth to 15 percent, some say 30. Even at 15 or 16 percent, it would be larger than the US hotel industry, with many brands at different price points.

How did your first hundred members find you?

Through events. We found people hosting events and looked at their communities. The more niche you are, the easier it is to find your people, especially with AI. Now 9Zero has clusters in energy generation, storage, food, oceanography and climate finance, and VCs moved in to be near the best entrepreneurs.

What does the climate industry map look like in 10 years?

We see two major climate hubs in the US today, San Francisco and New York, and we want significant hubs in both. LA and Boston would likely follow, all interconnected. This is a strong network effects business, and most members come through referrals. Better access between investors and entrepreneurs should do great things for the industry.