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Adam Neumann is rumored to be in command of a billion-dollar real estate firm, nearly three years after he left WeWork as CEO after the company’s unsuccessful IPO attempt.
According to The New York Times, which cited unnamed sources briefed on the deal, Andreessen Horowitz, a well-known venture capital firm best known for its early investments in Twitter and Airbnb, has invested around $350 million in Neumann’s most recent endeavor, called Flow. The article claims that the investment valued the business at more than $1 billion.
Requests for comment from representatives of Flow and Andreessen Horowitz were not immediately fulfilled.
Marc Andreessen, founding and general partner at the VC firm, disclosed the investment in a blog post on Monday without providing any financial information. He also stated why he decided to support Neumann and Flow, a residential real estate firm, despite the founder’s well-publicized fall from grace at WeWork.
In the blog post, Andreessen referred to Adam as a visionary leader who transformed commercial real estate, the second-largest asset class in the world, by introducing community and brand to a sector where neither had existed. He continued by saying that the histories of Adam and WeWork have been thoroughly documented, examined, and dramatized, sometimes with accurate results. However, the fact that only one individual, Adam Neumann, has radically changed the office experience and led a paradigm-changing worldwide organization in the process is frequently overlooked for all the effort put into covering the tale.
It’s not immediately evident how Flow intends to transform the residential housing sector. Flow presently only has a basic webpage with the words “Live life in flow” and the date 2023 in two words.
Andreessen promoted the brand-new business as the long-overdue answer to the “housing crisis” facing the country. He described how the new firm will “build a system where renters obtain the perks of owners” using a variety of jargon-filled phrases, such as “community-driven, experience-centric service.”
What happened to WeWork
WeWork, under Neumann’s direction, experimented with gyms, a school, and housing in addition to shared office spaces with lavish bonuses. The most recent of these initiatives, WeLive, allowed clients to rent a bed or a private room in a coliving setting, with shared spaces accessible for activities like yoga and ping pong.
WeWork had a terrible attempt to go public that was thwarted mainly by IPO paperwork that exposed Neumann’s unfettered power, multiple possible conflicts of interest, and WeWork’s huge losses. At its peak, WeWork was valued at $47 billion on the private market. Neumann lost his position as WeWork’s CEO in the end, yet he still received an exit deal reportedly worth hundreds of millions of dollars.
A TV show that featured Neumann in part as the epitome of startup culture’s excesses was inspired by WeWork’s spectacularly unsuccessful first effort to go public and meteoric climb to prominence.
In the end, WeWork went public in 2021 through a special purpose acquisition company or SPAC. WeWork is currently valued at $4 billion on the market.
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