Adam Neumann is the co-founder and previous CEO of the shared office startup WeWork. He is now working on a new rental real estate business that has received funding from Andreessen Horowitz. According to a statement in The New York Times, a venture capital firm put about $350 million into Neumann's new real estate business, Flow, which aims to make a living in a chain of branded apartment complexes everywhere.
If you know anything about how WeWork started, you might feel like you've seen this before. Once, the company, which gave workers flexible office space, was worth $50 billion. But after a failed initial public offering (IPO) and the firing of thousands of employees, WeWork became known more for its corporate drama than for its business. Neumann got a $1.7 billion payout when he left his job as CEO in 2019.
The Largest Investment For WeWork
The Times says that this is the "largest check" that Andreessen Horowitz has ever written to a company as part of a round of funding. Flow is worth more than $1 billion, even though critics have called his management of WeWork "a cautionary tale of corporate hubris." It hasn't even come out yet.
Neumann has already bought 3,000 apartments in Miami, Fort Lauderdale, Atlanta, and Nashville to build his Flow-branded apartments, which won't open until 2023.
Marc Andreessen, a co-founder of Andreessen Horowitz, says in a blog post, "We think it is natural that Adam Neumann's first venture since WeWork returns to the theme of bringing people together by changing their physical spaces and building communities where people spend the most time: their homes." Neumann's new company is called Homebase. "This change is ready for residential real estate, which is the largest asset class in the world."
Featured image: WeWork
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