Adam Neumann’s New Company Workflow: Coworking WeWork Rival

Adam Neumann was as soon as the face of WeWork, a coworking firm he co-founded in 2010. When WeWork tried to go public in 2019, its standing as essentially the most priceless startup within the U.S., with a $47 billion valuation in January 2019, got here beneath scrutiny from buyers who examined the corporate’s losses and lack of a plan for profitability.

WeWork’s first try to go public failed, and its valuation plummeted to $9 billion in 2021; the corporate filed for bankruptcy within the U.S. and Canada in 2023 and emerged from it in June.

Although Neumann stepped down from WeWork in September 2019, he is not accomplished with actual property but. In response to Bloomberg, Neumann is beginning a service rivaling WeWork: Workflow.

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^{Adam Neumann. Credit score: Photograph by Shahar Azran/Getty Photos}

The place WeWork promised coworking areas with perks like free beer, Workflow has a special, extra subtle aesthetic.

“I’m the form of one that truly learns extra from their errors than their successes,” Neumann stated in an April interview with CNBC. “I had time to replicate.”

Workflow falls beneath Neumann’s broader actual property firm, Circulation, which focuses on luxurious housing. Neumann based the corporate in 2022; Circulation received a $350 million investment from Andreessen Horowitz in August 2022 pushing its valuation above $1 billion. On Thursday, Neumann announced Circulation Home in Miami, a 466-unit, 40-story rental complicated to return subsequent yr, with baseline costs for a studio rental starting at $450,000.

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In contrast to WeWork, which incurred losses by drawing income from short-term leases whereas being sure to long-term ones, Workflow depends on areas inside Circulation’s residential buildings. So Workflow may have fewer long-term lease bills that reduce into income.

Neumann additionally acknowledged within the CNBC interview that “when individuals like being in a constructing, they keep. When individuals keep, it will increase occupancy and the worth.”

Andreessen Horowitz defined its funding in Circulation by stating that it met a urgent want in actual property. The enterprise capital agency additionally threw its help behind Neumann.

“For Adam, the successes and classes are a lot and we’re excited to go on this journey with him and his colleagues constructing the way forward for dwelling,” Andreessen Horowitz cofounder and common accomplice Marc Andreessen wrote on the agency’s web site.

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