Adam Neumann, the controversial founder of co-working startup WeWork, has managed to secure a US$350mln funding round from Silicon Valley venture capital firm Andreessen Horowitz (a16z) for a new rental startup called Flow.
Laying down the investment case in a blog post, a16z positioned the new property venture as a cure for the US housing crisis that will “create a system where renters receive the benefits of owners” and give “renters a sense of security.”
a16z calls Neumann a “visionary leader who revolutionised the second-largest asset class in the world — commercial real estate — by bringing community and brand to an industry in which neither existed before”.
Others see him as the man who botched the US$47bn WeWork flotation, reduced the company’s credit rating to junk, and was finally ousted as head of the once-promising disruptor company.
WeWork, which rented out trendy office rentals and co-working spaces, claimed in its pre-float 2019 filings that it wanted to “elevate the world’s consciousness” and dedicated the listing to “the energy of We”.
Unfortunately, the IPO was abandoned, but it later went public through a reverse merger in October 2021.
As of today, WeWork has a market valuation of US$4.2bn.