WeWork’s co-founder and former CEO Adam Neumann is back making headlines after leaving his previous venture in 2019. Adam Neumann has secured a massive cheque worth $350 million for his newly-floated residential real estate startup ‘Flow’; the funding comes from venture capital powerhouse Andreessen Horowitz, according to the New York Times. Adam Neumann was shown the door at WeWork after the company, which was once valued at around $47 billion, failed to go public. Neumann was the Chief Executive Officer at WeWork after having founded it with Miguel McKelvey in 2010.
The investment from Andreessen Horowitz is reported to be around $350 million, already valuing ‘Flow’ at $1 billion, while yet to begin operations. Andreessen Horowitz, founded in Silicon Valley in 2009 by Marc Andreessen and Ben Horowitz, is known for having invested in Airbnb, Facebook, Lyft, and much more. Earlier on Monday, Marc Andreessen wrote a blog post on the Andressen Horowitz website praising Adam Neumann after having announced that they are “excited to partner with Adam Neumann and his colleagues on Flow”.
“Adam is a visionary leader who revolutionized the second largest asset class in the world — commercial real estate — by bringing community and brand to an industry in which neither existed before,” Andreessen wrote. He added that Adam, and the story of WeWork, have been exhaustively chronicled, analyzed, and fictionalized — sometimes accurately. “We understand how difficult it is to build something like this and we love seeing repeat-founders build on past successes by growing from lessons learned. For Adam, the successes and lessons are plenty and we are excited to go on this journey with him and his colleagues to build the future of living,” the blog post added.
In the post, Marc Andreessen is seen claiming that the United States has a housing crisis. Earlier, reports have shown that Andressen has opposed a housing development plan in his city.
Adam Neumann’s new company Flow has a website but offers little to no details of what he plans to do — other than that the company will launch operations in 2023. In his blog post Andressen has suggested that Neumann’s new venture is on the path of “connecting people through transforming their physical spaces and building communities where people spend the most time: their homes. Residential real estate — the world’s largest asset class — is ready for exactly this change.”
The former WeWork CEO was chided a few years ago when details became public of how much control he had on the organisation. Although Neumann walked away from his own company he was handed a heavy exit package worth hundreds of millions of dollars. WeWork went public years after Adam Neumann’s exit and is valued at roughly $4 billion.