WeWork ex-CEO gets big check from Silicon Valley billionaire: report
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WeWork co-founder Adam Neumann, who left his position as CEO of the company in 2019 amid turmoil, has received an eye-popping amount of funding for another real estate startup, according to a new report.
Marc Andreessen, co-founder of Silicon Valley venture capital titan Andreessen Horowitz (a16z), announced that his firm is now backing Neumann's residential venture, Flow.
Adam Neumann speaks at the New York Times DealBook Online Summit on Nov. 9, 2021, in New York City. (Ryan Muir/Getty Images via New York Times / Getty Images)
"We 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," Andreessen wrote in a blog post explaining the decision.
Citing three people familiar, the New York Times reported Monday that Andreessen Horowitz is injecting roughly $350 million into the project, which amounts to "the largest individual check Andreessen Horowitz has ever written in a round of funding to a company" and "values Flow at more than $1 billion before it even officially opens its doors."
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Andreessen Horowitz did not immediately respond to FOX Business' inquiry seeking details of the deal.
Venture capitalist Marc Andreessen speaks at the TechCrunch Disrupt conference in San Francisco, California, on Tuesday, Sept. 13, 2016. (Paul Chinn/The San Francisco Chronicle via Getty Images / Getty Images)
In January, the Wall Street Journal reported that Neaumann-linked entities had already purchased upwards of 4,000 apartments spanning multiple states in order "to build a company that would shake up the rental-housing industry," citing property records and people familiar.
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Flow's website states that it will launch in 2023, and according to the Times, Andreessen will join its board. For now, the company's business model remains unclear, but Andreessen wrote in his post that "giving renters a sense of security, community, and genuine ownership has transformative power for our society."
At its peak, Neumann built WeWork into a co-working giant worth roughly $47 billion. He left with a hefty golden parachute following a failed initial public offering and criticism over his management style. WeWork is now valued at roughly $4 billion.
Adam Neumann speaks onstage during WeWork Presents Second Annual Creator Global Finals at Microsoft Theater on January 9, 2019 in Los Angeles, California. (Michael Kovac/Getty Images for WeWork / Getty Images)
But Andreessen appeared to address any skepticism over the decision to trust Neumann's vision and leadership of Flow.
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"We understand how difficult it is to build something like this and we love seeing repeat-founders build on past successes by growing from lessons learned," Andreessen wrote in his blog post. "For Adam, the successes and lessons are plenty and we are excited to go on this journey with him and his colleagues building the future of living."
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