Former WeWork CEO Has Launched a New $1 Billion-Worth Firm
Published: August 17, 2022
Almost three years after stepping down as CEO of WeWork, Adam Neumann is believed to have a new startup worth $1 billion. At its peak, WeWork was worth $47 billion on the private market, but Neumann had a failed attempt to take the company public.
The main reason for the failure was the IPO paperwork that showed the CEO’s unchecked power, many conflicts of interest, and the company’s losses. Neumann was eventually fired as CEO, but he walked away with a package believed to be worth millions of dollars.
A TV show was inspired by WeWork’s popularity and failed attempt at going public, which portrayed the CEO as someone who represents the startup culture’s excess.
However, WeWork eventually went public in 2021 through a special purpose acquisition company. The company’s current worth is around $4 billion.
WeWork previously expanded from shared coworking spaces to housing, gyms, and a school under Adam Neumann’s leadership.
Andreessen Horowitz, the venture capital company known for its early investments in Airbnb and Twitter, which made $3.72 billion in 2020, has invested around $350 million into Neumann’s newest project, Flow.
The investment was announced by Marc Andreessen, cofounder, and partner at the venture capital firm, without providing the exact sum of the investment. He backs up the real estate company called Flow because he believes Neumann revolutionized commercial real estate.
According to him, Neumann is the one who has radically recreated the office experience while also leading a paradigm-shifting global firm. Andreessen believes that the new company is the needed solution to the housing crisis in the country.
Adam is promising that renters will receive the benefits of owners. He wants to connect people by changing their physical spaces and building communities.