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Adam Neumann is rumored to be in command of a billion-dollar real estate firm, nearly three years after he resigned as CEO of WeWork following a failed attempt to take the company public.
The New York Times reports that Andreessen Horowitz, a well-known venture capital firm best recognized for its early investments in Twitter and Airbnb, has invested around $350 million in Neumann’s most recent project, dubbed Flow. The investment reportedly valued the business at more than $1 billion.
Requests for comment from Flow and Andreessen Horowitz representatives were not immediately fulfilled.
Cofounder and general partner of the venture capital company Marc Andreessen announced the investment in a blog post on Monday without providing any financial information. He also revealed the reason 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 described Adam as a visionary leader who brought community and brand to a sector where neither had existed, revolutionizing the second-largest asset class in the world, commercial real estate. He said Adam and WeWork’s history had been thoroughly documented, examined, and fictionalized—sometimes with accurate results. However, Adam Neumann is the only person who has significantly changed the office experience and led a worldwide organization that has changed paradigms, despite all the effort put into telling the narrative.
How Flow intends to change the residential housing sector is not immediately evident. However, a basic website for Flow now has the motto “Live life in flow” and the two-word debut date of 2023.
Andreessen promoted the brand-new business as the country’s long-overdue answer to its “housing issue.” In order to describe how the new firm would “build a system where renters obtain the perks of owners,” he mixed jargon-filled phrases like “community-driven, experience-centric service” into his explanation.
WeWork under Neumann
WeWork experimented with gyms, a school, and housing under Neumann’s direction as it grew from shared coworking spaces with lavish incentives. The most recent of these initiatives, WeLive, allowed clients to rent beds or private rooms in a coliving setting with communal spaces available for yoga, ping-pong, and other activities.
WeWork, which had a peak private market valuation of $47 billion, made a disastrous attempt to go public, which was largely thwarted by IPO paperwork that exposed Neumann’s unrestrained power, several apparent conflicts of interest, as well as WeWork’s huge losses. Despite being finally fired from his position as WeWork’s top executive, Neumann left with an exit payment reportedly worth hundreds of millions of dollars.
WeWork’s meteoric rise and spectacularly unsuccessful initial public offering inspired a TV program that featured Neumann in part as the epitome of startup culture’s extravagance.
Through a special purpose acquisition company or SPAC, WeWork eventually went public in 2021. Approximately $4 billion is the current market worth of WeWork.