WeWork Founder's New Startup Surpasses $1 Billion
Adam Neumann achieved this feat just three years after leaving WeWork.
In the news of American venture capital, the famous fund Andreessen Horowitz hit very hard last week. No less than 350 million dollars have been injected into Flow. This nugget, still unknown to the general public, is now valued at more than a billion dollars thanks to its founder. Adam Neumann, the man behind WeWork, has made it his new venture and investors seem to be giving him blind faith.
Flow is actually the entrepreneur’s second startup since his setbacks with WeWork. Adam Neumann is also the head of Flow Carbon, a startup specializing in the creation of a carbon market on the Blockchain. Flow, with a similar name, is dedicated to the real estate market. Despite its billion-dollar valuation, Flow has still not launched its commercial activities, planned for next year.
So we have very little information on Flow's model. Except that the company plans to address housing issues in the United States with a residential real estate company. “The largest asset class in the worlddescribed the a16z fund in a press release. Adam Neumann, with his fortune and fresh money from investors, buys with a vengeance. He has already bought more than 4000 apartments, for a heritage of more than a billion dollars.
A16z had never invested so much in a single funding round. At a time when venture capital is at half mast and the recession is sorting out the projects of new tech companies, the fund seems to be making a big bet. While awaiting payback from his investments in crypto projects (which could come in several years), A16z wants a massive stake in a company that could see him hit the big bucks in no time.
Flow Carbon can also count on Andreessen Horowitz for financing. The fund deposited a $70 million note there last May. It must be said that the fund is above all specialized in the financing of blockchain and Web3 projects. In his portfolio, we note the presence of crypto and payment companies such as Robinhood, Coinbase, Diem and Stripe. A16z has already participated and resold its shares in Airbnb, Affirm, Facebook, Lyft or even Pinterest and Roblox.
The much appreciated concept of “community”
To come back with a new project entrepreneurial, Adam Neumann has not forgotten his initial vision. He already had it with WeWork and built the concept of his nugget with investors under this keyword: communities. If Flow is still vague, the billionaire has once again shared his interest in communities, this time related to residences.
“We think it’s natural that for his first venture since WeWork, Adam is returning to the theme of connecting people by transforming their physical spaces and building communities where people spend the most time: their homes”, wrote Andreessen Horowitz. To see now if the ghosts of the past will not have any with this new unicorn. As a reminder, the misadventures of WeWork had led the company to fall from a valuation of 47 billion dollars to less than 10 billion.