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How Adam Neumann, cofounder and CEO of WeWork, organized $20 billion in funding with one meeting
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How Adam Neumann, cofounder and CEO of WeWork, organized $20 billion in funding with one meeting

"At $20 billion, WeWork is the most valuable startup in America outside Uber and Airbnb. The bet: rather than just building co-working spaces, it's going to change everyone's office experience.

Softbank would invest $3 billion directly into WeWork. Neumann's team would build and manage the offices, and Softbank would handle the local relationships. Valuation: $20 billion. WeWork, which straddles real estate, hospitality and technology, was now worth about the same as hotel operator Hilton Worldwide."

Source: www.forbes.com

Business deals are breaking boundaries too. At the end of their taxicab meeting, Son emailed a photo of their “digital cocktail-napkin contract” to Neumann and their business relationship was sealed.


Coworking industry tracker cites concern over increased competition, overvaluation, and Regus’ plunge in value 
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Coworking industry tracker cites concern over increased competition, overvaluation, and Regus’ plunge in value 

The coworking industry is getting more competitive. Recent examples include stories about coworking spaces offering of a year's free rent to prospective tenants, reports of coworking spaces spying on competitors and coworking spaces closing down due to growing competition.

Source: www.smallbizlabs.com

Some are questioning the sustainability of co-working with Regus’ reporting a loss of 1/3rd their marketing value, a WSJ article likening WeWork's $20 Billion valuation to "pixie dust," and increased competition traditional office buildings,  libraries, and coffee shops.