The Rocket Lounge business incubator, accelerator closes office space in Naples

A few months after launching in Naples, The Rocket Lounge abruptly closed its doors.

The new headquarters for the business incubator and accelerator — on the fourth floor of the landmark Bank of America financial center in Park Shore — has quietly closed, as its founder looks to focus more on services and programs for startups and entrepreneurs, not on office space.

The new vision for Rocket Lounge doesn't include operating co-working, or shared, office space. That idea proved to be more difficult and costly than expected as the center in Naples was slow to fill up with the desired companies, said Dieter Kondek, founder and CEO.

The center in Naples could accommodate all kinds of companies, but the main focus was on attracting businesses in medical technology and the internet of things, or IoT, which involves making everyday objects smart and connected. That was slow to happen. 

"There is a lot of cost involved in the facilities," Kondek said. "It's not easy to fill it up. And we needed a lot of people to be there — staff and a receptionist." 

Going forward, the emphasis will be on mentoring startups and more established international companies looking to expand in Florida.  

"We will be active. We will be stronger than before," Kondek said.

The co-working space in Naples was nearly twice as big as the original one in downtown Fort Myers, which opened in 2016.

The Naples location took the place of the one off Hendry Street in Fort Myers, which faced obstacles of its own — including a shortage of parking. 

More:Rocket Lounge in Fort Myers ready for lift off

More:The Rocket Lounge business incubator and accelerator has a new Naples headquarters

Kondek hoped members in Fort Myers would relocate to Naples, but that didn't happen.

Paul Shahriari, a founder and CEO of Ecomedes, was one of the first entrepreneurs to move into the Fort Myers location when it launched. He was surprised when the offices closed, and with little notice.

Ecomedes, a data management platform for buying sustainable materials for construction projects, was considered one of The Rocket Lounge's success stories, but Shahriari said the center didn't provide the kind of programs and support he'd hoped for when he signed on as a member. He blames the failure on several factors.

"I think it's just a lack of true support from the community and capital," he said. 

Meanwhile, his company has moved back to Cape Coral, where it operates in a 1,000 square foot office above Shahriari's garage in the green home he built in 2010. 

 "I think most folks had to move on and find other space," Shahriari said. 

More: Fort Myers startup tied to $3 billion urban project in Tampa

The Naples location signed up 12 members before it shuttered in mid-May. The Rocket Lounge will continue to offer its services to the companies that want it, Kondek said. 

"Some of them don't need mentoring," he said.

Some of the first occupants at the Naples location moved from the Naples Accelerator, a government-funded center with a similar mission to grow startups in Collier County. Those tenants included the Naples Herald, a daily news website; Golf Life Navigators, a matchmaking service that helps golfers find their ideal golf club and lifestyle; and HyperTeam, a management and IT consultant.

Golf Life Navigators, one of the Naples Accelerator's first members, wanted more space to support its growth and a quieter setting, said co-founder and CEO Jason Becker. 

"We are still here at the Bank of America building, although management is going through a transition," Becker said in an email.

The leasing agent for the building could not immediately be reached for comment about how the space is being handled now, or the circumstances surrounding The Rocket Lounge's departure. 

One of the first events The Rocket Lounge in Naples hosted was an all-day boot camp for entrepreneurs, but it wasn't well attended. It drew about 15 participants, compared with the dozens that might have been expected at a similar event elsewhere. 

It can take time to get people with ideas out of their "comfort zone" and into the entrepreneurial ecosystem, Kondek said.

The Naples center had the same investors as the original one, but there were a few new partners, including Bud Stoddard, a serial entrepreneur who served as the center's chief operating officer.

Stoddard will continue to mentor companies through The Rocket Lounge and invest in them, Kondek said.

Stoddard declined to comment. 

Many of the companies Kondek is working with are international ones that are looking for offices in larger markets, such as Miami, Tampa or Orlando, he said, and some are too early in their explorations to need the space.

Kondek, a native of Germany who has co-founded more than a half-dozen companies here and abroad, has strong ties and relationships in Europe. He hoped to attract eight to 10 international companies in a year to the Rocket Lounge in Naples.

Now that The Rocket Lounge has left behind its co-working space, Kondek said he's talking with other operators about partnerships to help his clients find shared or virtual office space if they need it or want it here — or elsewhere in Florida. Those operators include the Naples Accelerator, which has the room.

"We are not a competitor anymore," Kondek said.