WeWork was founded in 2010 and is headquartered in New York City, New York, USA, with more than 2,000 full-time employees. It is an American company that provides entrepreneurs, freelancers, startups and small businesses with shared workspaces, communities and services . After the latest round of financing in 2019, the company’s valuation reached US$40+ billion, making it one of the world’s top start-up technology companies.
WeWork designs and builds physical and virtual communities in which entrepreneurs share space and office services and have the opportunity to work together. As Wework himself said: “We hope that it is not just a beautiful and comfortable office space, but a shared community where’me’ can be integrated into’us’. Here, we use personal growth as the definition of success New standards, and the community is our medium of success.”
WeWork’s more than 100,000 members can access common health insurance, internal social networks, social events and seminars, and annual summer meetings (summer camps).
So far, WeWork has opened 528 shared spaces in 111 cities in 29 countries, including the United States, Australia, Canada, India, China, Hong Kong, France, the United Kingdom, Israel, South Korea, Mexico, the Netherlands, and Germany. , As many as 38% of the companies settled are Fortune 500 companies, and the number of members is 527,000.
WeWork customers include many start-up companies, such as: Consumr, HackHands, Whole Whale, Coupon Follow, Turf, Fitocracy, Reddit and New York Tech Meetup, etc.; and many large companies, such as: Pepsi , General Motors , IBM , Spotify , Salesforce, etc. the company.
WeWork company philosophy:
- Encouraged: WeWork is committed to the cause it loves and yearns for it to be able to connect to the wider world
- Entrepreneurship: We are creators, leaders, and independent innovators. We keep trying new things, brave to challenge traditions, and never fear failure
- Sincerity and credibility: We treat our brand sincerely and never claim to be perfect. We will always strive to maintain this trustworthy attitude
- Perseverance: We never compromise, we can overcome various difficulties and complete tasks. Look for the direction and work hard, if you need to break the routine, we will definitely support you
- Full of gratitude: We are grateful to our partners and members, who have witnessed our common growth. We do not stop and succeed, we always look forward to getting better
- Unity and mutual assistance: We are united and always help each other. Like-minded emotions let us understand that without each other, nothing will be accomplished.
- Data from CBRE Group and Cushman & Wakefield: In 155 cities with known data around the world, the average annual cost of occupancy per member is approximately US$11,700. Based on this calculation, WeWork is expected to reach a scale of US$1.7 trillion through the current 149 million potential members in 111 cities; among the approximately 255 million potential members in 280 target cities around the world, the estimated potential scale can reach 3 Trillions of dollars.
- In 2016, 2017 and 2018, Wework’s revenue was 436 million, 886 million and 1.822 billion US dollars, respectively, of which the year-on-year increase in 2018 exceeded 100%. The net losses in 2016, 2017 and 2018 were 430 million, 884 million and 1.611 billion US dollars, respectively.
- For the six months ended June 30, 2019, WeWork’s revenue and net loss were US$1.530 billion and US$690 million, respectively. Compared with the same period in 2018, revenue increased by 101%, and the net loss was slightly higher than 2018’s $628 million.
- WeWork’s main source of income is fixed membership fees-a monthly payment is required to enter the office. For the six months ended June 30, 2019, this revenue accounted for approximately 83% of total revenue. In addition, it provides members with value-added services, thereby charging product fees and service commissions, which account for about 5%.
- In 2008, Adam Neumann (Adam Neumann) and Miguel McKelvey (Miguel McKelvey) founded GreenDesk-an “environmental cooperative space”.
- In 2010, Neumann and McKelvey sold GreenDesk and founded WeWork.
- By 2014, WeWork was considered “the fastest-growing lessee of new office space in New York” and was becoming “the fastest-growing lessee of new space in America”.
- As of 2014, WeWork’s investors include: JP Morgan Chase & Co , T. Rowe Price Associates , Wellington Management, Goldman Sachs Group , the Harvard Corp., Benchmark, Mortimer Zuckerman ( former CEO of Boston Properties ), etc.
- As of January 2015, WeWork has 51 co-working spaces (co-creation spaces) in the United States, Europe and Israel, twice the number at the end of 2014, and plans to expand to all continents (except Antarctica) by 2017.
- On June 1, 2015, WeWork announced that Artie Minson, the former chief financial officer of Time Warner Cable, will join the company as president and chief operating officer.
- On March 9, 2016, WeWork said that Legend Holdings (Legend Holdings) and Hony Capital Ltd. (Hony Capital Ltd.) led the completion of the company’s new round of financing, WeWork received 430 million US dollars in this round of financing, and the company’s valuation reached 160 One hundred million U.S. dollars.
- As of March 2016, WeWork has 80 co-working spaces in 23 cities around the world, distributed in New York, Boston, Philadelphia, Washington DC, Miami, Chicago, Austin, Berkeley, San Francisco, Los Angeles, Portland and Seattle And other cities, as well as London in the UK, Amsterdam in the Netherlands, Tel Aviv in Israel, etc.
- As of October 2016, WeWork has raised a total of US$1.7 billion in private equity funds.
- In 2017, WeWork began to set up new offices, such as Beijing, Buenos Aires, Paris, and Sao Paulo. It is expected that new projects in Mumbai, Bogota, and Melbourne will also be launched this year.
- In March 2017, SoftBank Group invested US$300 million in WeWork Cos., a co-working space company.
- In April 2017, WeWork launched an online store for its members, including services and software.
- On July 11, 2017, PingWest Pinwan reported that the US co-working space company WeWork received US$760 million in G round of financing, and the company’s valuation reached US$20 billion.
- In April 2018, WeWork China announced the acquisition of naked Hub for RMB 2.5 billion to accelerate its scale expansion.
- In July 2018, WeWork China announced that it had received US$500 million in Series B financing from investors such as Trust Capital, Temasek, and SoftBank.
- In January 2019, SoftBank invested US$2 billion in WeWork, and WeWork’s valuation reached US$47 billion.
- On October 23, 2019, according to foreign media news, WeWork received $5 billion in new financing from SoftBank, and SoftBank will hold approximately 80% of the shares.
As of August 2019, WeWork has not yet determined whether it is listed on NASDAQ or New York. The company has hired JPMorgan Chase, Goldman Sachs, Bank of America Merrill Lynch, Barclays, Citi, Credit Suisse, HSBC, UBS and Wells Fargo. As many as 9 investment banks within the company acted as the underwriters of the IPO.
Compared with IWG companies in the same industry , WeWork is extremely overestimated anyway.
- WeWork : It has 528 locations in 29 countries around the world, with a loss of US$1.9 billion and a valuation of US$10-47 billion;
- IWG : It has 3,300 locations in 120 countries around the world, with a profit of US$500 million and a valuation of US$3.78 billion.
Due to the poor market environment and the market’s disapproval of Wework’s extremely high valuation, We Co. was forced to withdraw its IPO application in September 2019.