Venture capital firm Andreessen Horowitz likes Adam Neumann’s new Flow
15 August 2022 - 17:05
byNiket Nishant
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Venture capital giant Andreessen Horowitz said on Monday it would be investing in Adam Neumann’s residential real estate company Flow, backing the WeWork co-founder who has often drawn criticism for his allegedly erratic management style.
The investment was announced in a blog post by Marc Andreessen, co-founder and general partner at the venture capital firm. The blog did not disclose the financial details of the investment.
“Adam is a visionary leader who revolutionised the second-largest asset class in the world — commercial real estate,” Andreessen wrote.
In 2019, Neumann agreed to resign as CEO of WeWork and give up majority voting control of the company after Japanese conglomerate SoftBank and other shareholders turned on him over a plunge in the company’s estimated valuation ahead of a planned initial public offering.
WeWork ultimately went public in 2021 through a merger with a special purpose acquisition company in a deal that valued the office-sharing start-up at $9bn, a steep drop from the $47bn it was worth in 2019.
Andreessen Horowitz and Flow did not immediately respond to requests seeking additional comment.
Flow’s website does not offer much details about its business, except that it is scheduled to launch in 2023.
According to a Wall Street Journal report in January, Neumann had acquired majority stakes in more than 4,000 apartments, valued at $1bn altogether.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Venture capital firm Andreessen Horowitz likes Adam Neumann’s new Flow
Venture capital giant Andreessen Horowitz said on Monday it would be investing in Adam Neumann’s residential real estate company Flow, backing the WeWork co-founder who has often drawn criticism for his allegedly erratic management style.
The investment was announced in a blog post by Marc Andreessen, co-founder and general partner at the venture capital firm. The blog did not disclose the financial details of the investment.
“Adam is a visionary leader who revolutionised the second-largest asset class in the world — commercial real estate,” Andreessen wrote.
In 2019, Neumann agreed to resign as CEO of WeWork and give up majority voting control of the company after Japanese conglomerate SoftBank and other shareholders turned on him over a plunge in the company’s estimated valuation ahead of a planned initial public offering.
WeWork ultimately went public in 2021 through a merger with a special purpose acquisition company in a deal that valued the office-sharing start-up at $9bn, a steep drop from the $47bn it was worth in 2019.
Andreessen Horowitz and Flow did not immediately respond to requests seeking additional comment.
Flow’s website does not offer much details about its business, except that it is scheduled to launch in 2023.
According to a Wall Street Journal report in January, Neumann had acquired majority stakes in more than 4,000 apartments, valued at $1bn altogether.
Reuters
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