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WeWork Founder Adam Neumann Handed $350 Million By Leading VC For Real Estate Company

WeWork former founder raised money for another Real Estate company

WeWork’s controversial founder Adam Neumann crashed out of the coworking giant in dramatic fashion, just weeks before the company was expected to go public in a multi-billion dollar IPO.  But that’s so 2019; now, it’s 2022 and Neumann has come out of hiding. 

Earlier this year, headlines covered Neumann’s role in a VC-backed blockchain-based climate startup called Flowcarbon. Now, one of VC’s shining stars is reportedly writing its biggest single check ever to Neumann for a similarly-named residential real estate company led by the billionaire.

The check amount? $350 million. And the company name? Well, Flow. Funny coincidence, right? 

Just to confirm, Flow and Flowcarbon are not related. However, Neumann’s recent raises absolutely are. Neumann’s raise at Flowcarbon notched a $200 million valuation for the climate startup. The raise for the real estate startup Flow makes it a unicorn – and all of that has happened just in the last three months for the charismatic enigma of a founder.

Two years after exiting WeWork, he featured in a Financial Times profile where he confirmed that he was working on a number of new startups. Among one of his prouder projects was acquiring millions of apartment units, largely in the American Southeast – in Atlanta, Miami, and Nashville to name a few.

Related: Top REITs Stocks by Market Cap.

It’s likely that Neumann’s Flow vision hinges on the more than 4,000 apartment units that he has acquired. However, it’s unknown – or at least hard to discern – what makes Neumann’s new residential real estate startup so different from existing apartment magnates such as Greystar, Lincoln, or Pinnacle. That is, at least beyond some new-agey copy and a blog post from Andreesen Horowitz’s Marc Andreesen.

All-in-all, though, it demonstrates that risk appetite is still great in the world of venture – after all, we are talking about one of the market’s leading investors deciding to bet on a founder who has been referred to by The Atlantic as “the most talented grifter of our time” and as “rare charlatans who believed their own hype” by The New Yorker.

We’re not quite sure what Flow could be yet, other than the makings of a new apartment conglomerate, but Andreesen’s backing also proves another huge appetite exists – one for shattering legacy industries. Their largest-ever single round check proves that there is currently a lot of value in businesses offering promises to break the mold. For this round, it’ll be residential real estate… but who knows what could be next?

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