{"id":1608838,"date":"2022-08-16T12:47:27","date_gmt":"2022-08-16T16:47:27","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1608838"},"modified":"2022-08-16T12:47:37","modified_gmt":"2022-08-16T16:47:37","slug":"startup-ceo-who-lost-billions-of-market-value-walked-away-with-huge-sum-gets-massive-check-for-another-venture","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/startup-ceo-who-lost-billions-of-market-value-walked-away-with-huge-sum-gets-massive-check-for-another-venture\/","title":{"rendered":"Startup CEO Who Lost Billions Of Market Value, Walked Away With Huge Sum Gets Massive Check For Another Venture"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">38<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fstartup-ceo-who-lost-billions-of-market-value-walked-away-with-huge-sum-gets-massive-check-for-another-venture%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1608838&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Adam Neumann, the <a href=\"http:\/\/dailywire.com\/topic\/business\" target=\"_blank\" rel=\"noopener\">founder<\/a> of coworking space provider WeWork, received a $350 million check for another <a href=\"https:\/\/www.dailywire.com\/topic\/housing\" target=\"_blank\" rel=\"noopener\">real estate<\/a> venture.<\/p>\n<p>WeWork operated 44.8 million rentable square feet in flexible workspaces as of 2021, including 1% of the total commercial office stock in New York City, according to <a href=\"https:\/\/www.sec.gov\/ix?doc=\/Archives\/edgar\/data\/1813756\/000181375622000003\/we-20211231.htm\">filings<\/a> with the Securities and Exchange Commission. Yet the company fell from a $47 billion valuation to a $4 billion valuation after a failed public offering in 2019, which occurred amid reports of mismanagement that later resulted in Neumann\u2019s ouster \u2014 although he still managed to exit the firm with hundreds of millions of dollars.<\/p>\n<p>Venture capital firm Andreessen Horowitz, co-founded by software entrepreneur Marc Andreessen, nevertheless cut Neumann a $350 million check for residential real estate company Flow, according to a report from <a href=\"https:\/\/www.nytimes.com\/2022\/08\/15\/business\/dealbook\/adam-neumann-flow-new-company-wework-real-estate.html\">The New York Times<\/a>. The funds constitute the largest individual investment Andreessen Horowitz has granted in a single round of funding and places Flow above a $1 billion valuation.<\/p>\n<p>Flow will operate the 3,000 apartment units Neumann owns in Miami, Fort Lauderdale, Atlanta, and Nashville starting in 2023, although specifics about the company\u2019s business plan remain unknown. In a <a href=\"https:\/\/a16z.com\/2022\/08\/15\/investing-in-flow\/\">blog post<\/a> explaining the investment, Andreessen implied that Flow will seek to address pain points in the real estate market often faced by younger Americans.<\/p>\n<p>\u201cThe demographic trends driving America\u2019s housing market are impossible to ignore: our country is creating households faster than we\u2019re building houses,\u201d Andreessen wrote. \u201cStructural shortages in available homes for sale push housing prices higher, while young people are staying single for longer and increasingly concentrating in highly desirable urban centers. These factors put enormous pressure on rents in the nation\u2019s most dynamic cities, starkly revealing the troubling realities of both sides of the housing market\u2019s two historical models.\u201d<\/p>\n<p>Despite past controversy, Andreessen expressed confidence in Neumann\u2019s leadership. \u201cWe think it is natural that for his first venture since WeWork, Adam returns to the theme of connecting people through transforming their physical spaces and building communities where people spend the most time: their homes,\u201d he continued. \u201cResidential real estate \u2014 the world\u2019s largest asset class \u2014 is ready for exactly this change.\u201d<\/p>\n<p>Indeed, rent in many large cities continues to <a href=\"https:\/\/www.dailywire.com\/news\/average-manhattan-rent-surges-past-5000-per-month\">rise<\/a> amid low inventories and broader constraints in the housing market. Average rent in the New York City borough of Manhattan, for example, surpassed $5,000 in the month of June, according to a recent <a href=\"https:\/\/millersamuel.com\/files\/2022\/07\/Rental-06_2022.pdf\">report<\/a> from real estate appraisal firm Miller Samuel.<\/p>\n<p>The market for single-family homes is likewise experiencing <a href=\"https:\/\/www.dailywire.com\/news\/united-states-enters-housing-recession\">disruptions<\/a> due to rising mortgage rates and persistent shortfalls in supply. The National Association of Home Builders\u2019 <a href=\"https:\/\/www.nahb.org\/news-and-economics\/press-releases\/2022\/08\/builder-confidence-underwater-after-falling-for-eighth-consecutive-month\">Housing Market Index<\/a> fell by six points in August to 49, marking the first time since the spring of 2020 that the metric has fallen below the breakeven value of 50 \u2014 thereby indicating a \u201chousing recession.\u201d<\/p>\n<p>\u201cOngoing growth in construction costs and high mortgage rates continue to weaken market sentiment for single-family home builders,\u201d NAHB Chairman Jerry Konter said in a press release. Mortgage rates began climbing at the beginning of 2022, according to data from government-backed mortgage enterprise <a href=\"https:\/\/fred.stlouisfed.org\/series\/MORTGAGE30US\">Freddie Mac<\/a>, with 30-year fixed rates beginning at slightly over 3% in January and surging to over 5% as of Thursday.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Adam Neumann, the founder of coworking space provider WeWork, received a $350 million check for another real estate venture. WeWork operated 44.8 million rentable square feet in flexible workspaces as of 2021, including 1% of the total commercial office stock in New York City, according to filings with the Securities and Exchange Commission. Yet the &#8230;<\/p>\n","protected":false},"author":1,"featured_media":1608952,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1608838","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1608838","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1608838"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1608838\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1608952"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1608838"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1608838"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1608838"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}