![]() ![]() One of the conference’s other speakers was Adam Neumann, a six-foot-five Israeli with flowing black hair, who wore designer jeans and a dark blazer-fancy dress amid the crowd’s T-shirts. In 2012, Neuner went to a co-working-industry conference, in Austin, Texas, to appear on a panel and try to meet investors. They’re the fairy godmothers of success.” funding is the stamp of approval.” He noted, “In every startup story, the V.C.s supercharge everything. They had raised some money from family and friends, but, as Neuner put it to me, “V.C. Neuner and Coonerty also started looking for venture capital. Soon, NextSpace opened locations in San Francisco, Los Angeles, and San Jose. NextSpace provided a refuge for local freelancers desperate for office camaraderie, and within six months the company was turning a small profit. “We really believed that this would be a totally new way of working,” he told me. Neuner, who had attended Harvard’s Kennedy School after serving in the Navy, was looking to be part of a movement. Neuner and Coonerty named their company NextSpace Coworking. They leased a cavernous building a few steps from a surf shop and a sex-toy boutique, and equipped it with desks, power strips, fast Wi-Fi, and a deluxe coffee-maker. This commitment was made at the valuation of $47 billion.In 2008, Jeremy Neuner and Ryan Coonerty, two city-hall employees in Santa Cruz, California, decided to open a co-working space. Softbank is also looking to renegotiate an earlier pledge for a $1.5 billion investment in the form of warrants due in April. The Japanese technology conglomerate, founded by billionaire Masayoshi Son has already invested about $10 billion in the real estate startup. Meanwhile, it's reported Softbank has proposed to invest a further $5 billion in WeWork. As a result, the company is considering reducing the number of properties it leases, cutting as many as 2,000 jobs and scrapping a streamlined expansion plan. WeWork canceled its planned initial public offering as a result of its ongoing operational and financial struggles.Īccording to the sources cited by Reuters, WeWork is at risk of running out of cash as early as November unless it secures new funds. at an estimated valuation of $47 billion. For context, WeWork secured a $6 billion funding in Jan. The company’s estimated valuation reportedly dropped from $47 billion in January to as little as $10 billion in Sept. Plagued by a series of issues, including investor concerns about worsening losses and its business model, WeWork’s valuation has taken a significant hit over the last month. The WeWork special committee will seek to protect the interest of minority shareholders in any funding deal in the company. The second member is Lew Frankfort, the former CEO of a luxury handbag brand Coach, which is a subsidiary of Tapestry (NYSE: TPR). ![]() Per Reuter’s sources, one of the members is Bruce Dunlevie, a general partner at WeWork shareholder Benchmark Capital. The committee, consisting of two members of The We Company board of directors, will represent the interests of all the company’s shareholders in its quest to urgently raise funds. The news was first reported by Reuters, citing four people familiar with the situation. The company is discussing a $5 billion financing rescue from its largest shareholder Softbank Group Corp (OTC: SFTBY), and its principal lender JPMorgan Chase & Co. The We Company, WeWork’s parent company, has set up a special board committee to study financing proposals as a cash crunch looms. ![]()
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