Home Software Windows WeWork’s former CEO has a new startup, reportedly valued at more than $1 billion

WeWork’s former CEO has a new startup, reportedly valued at more than $1 billion

WeWork’s former CEO has a new startup, reportedly valued at more than $1 billion

Andreessen Horowitz, the outstanding enterprise capital agency recognized for its early investments in Twitter and Airbnb, has pumped about $350 million into Neumann’s latest enterprise, known as Circulation, in keeping with The New York Occasions, citing unnamed sources briefed on the deal. The funding valued the startup at more than $1 billion, in keeping with the report.

Representatives for Circulation and Andreessen Horowitz didn’t instantly reply to requests for remark.

In a weblog submit Monday, Marc Andreessen, cofounder and normal associate at the VC agency, introduced the funding, with out disclosing monetary particulars. He additionally defined his considering for backing Circulation, a residential actual property firm, and Neumann regardless of the founder’s high-profile fall from grace at WeWork.

“Adam is a visionary chief who revolutionized the second largest asset class on this planet — industrial actual property — by bringing neighborhood and model to an business by which neither existed earlier than,” Andreessen wrote in his submit Monday. “Adam, and the story of WeWork, have been exhaustively chronicled, analyzed, and fictionalized — generally precisely. For all of the power put into protecting the story, it is usually underneath appreciated that just one individual has basically redesigned the workplace expertise and led a paradigm-changing world firm within the course of: Adam Neumann.”

Former WeWork CEO Adam Neumann opens up about his regrets

It isn’t instantly clear how Circulation seeks to revolutionize the residential housing business. Circulation presently has a naked bones web site, with the slogan “Stay life in move” and two phrases stating it should launch in 2023.

Andreessen positioned the new firm as a long-awaited resolution to the nation’s “housing disaster.” He used a mixture of jargon-filled phrases — “community-driven, experience-centric service” — to elucidate how the new startup would “create a system the place renters obtain the advantages of householders.”

“We expect it’s pure that for his first enterprise since WeWork, Adam returns to the theme of connecting folks via reworking their bodily areas and constructing communities the place folks spend probably the most time: their properties,” Andreessen wrote. “Residential actual property — the world’s largest asset class — is prepared for precisely this modification.”

Beneath Neumann’s management, WeWork expanded from shared coworking areas with elaborate perks to experiment with gyms, a college and housing. The final of these efforts, known as WeLive, let prospects lease a mattress or personal room in a coliving location, with widespread areas out there for yoga, ping-pong and more.
As soon as valued at $47 billion on the personal market at its peak, WeWork went via a disastrous try to go public, foiled largely by IPO paperwork that exposed Neumann’s unchecked energy and quite a few potential conflicts of curiosity, in addition to WeWork’s staggering losses. Neumann finally was ousted from his chief govt function at WeWork, however walked away with an exit package deal reportedly value lots of of thousands and thousands of {dollars}.
WeWork’s dramatic rise and spectacular failed first try at going public impressed a TV present, which partly portrayed Neumann because the poster little one of startup tradition’s extra.
WeWork finally went public through a particular objective acquisition firm, or SPAC, in 2021. WeWork presently has a market worth of about $4 billion.


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