Reaching a staggering valuation, WeWork will enjoy the status that other technology companies enjoy today. WeWork offers sharing office space and is set to be a 47 billion dollar company.
WeWork’s perspective is more towards pleasing the millennial audience, where closely knit office spaces that are rented out, allows individuals to collate a society of their own. The success of this idea is measured by its astonishing valuation, perhaps the key of this is the tap beer that their kitchen offers. Almost a decade ago, We Company was born out of a need to find solutions for renting offices. Today it has expended to 100 cities with over 401,000 members.
The perspective about the company is clear with WeLive and WeGrow in the picture, with them offering residential and educational facilities respectively. According to Neumann, the co-founder, the monetary valuation of the company is with respect to their philosophy, and their reach, rather than their revenues.
Analyst, CalumBattersby has called We no different from IWG and Australia’s ServCorp. We Company is sure to face several challenges, in comparison to companies like Uber. We Company needs to instantly invest in capital, owing to its real estate service nature. The company has received a huge investment boost, affecting their valuation remarkably. Trusted names such as Goldman Sachs, JP Morgan and Japanese Softbank, all come together in support of this enterprise. This sure gives a morale boost to the founders of We Company, and those associated with it.
Although it is facing huge loses, Artie Minson, the CFO of We, is positive about the performance of the company.
We’s 42% stake in wavegarden has less than helped the profits of the company. Experts in the real estate business claim that there are promising signs in WeLive.
Before going public, We Company must put forth a procedure which could present some of the practices of We Company such as Neumann leasing buildings he shares ownership of, to WeWork, as acceptable to the board of investors.
Several hindrances lie ahead for We Company, but there are no lesser signs of a promising future as well.