Former CEO of WeWork, a company that provides coworking spaces, including physical and virtual shared spaces, Adam Neumann has found his new home at Flow. Neumann, who left WeWork on allegations of mismanagement, toxic work culture and the company’s failed IPO, is now in charge of Flow, which is a new residential real estate company valued at a billion dollars.
The entire Silicon Valley has been shaken by news. Now, as per a report by CNN, prominent venture capital firm Andreessen Horowitz has announced plans to invest in Neumann’s latest company on Monday. If reports are to be believed, a hefty amount of $350 million has been invested in the startup by Andreessen Horowitz, which has pushed the valuation of the company to $1 billion before its launch. However, this has sparked massive outrage online.
Here is everything you need to know about Flow
As per reports, Flow is a real estate startup with an aim of revolutionising the residential housing industry. The company is reportedly going to launch in 2023. It is being launched three years after Neumann’s exit from WeWork and six years after the establishment of the businessman’s short-lived rental business, WeLive.
Marc Andreessen, co-founder of Andreessen Horowitz in a blogpost on Monday said Flow had the capability to transform “the entire value chain, from the way buildings are purchased and owned to the way residents interact with their buildings to the way value is distributed among stakeholders.”
“In a world where limited access to home ownership continues to be a driving force behind inequality and anxiety, giving renters a sense of security, community, and genuine ownership has transformative power for our society,” said Andreessen.
“When you care for people at their home and provide them with a sense of physical and financial security, you empower them to do more and build things. Solving this problem is key to increasing opportunity for everyone,” he added. Andreessen said that Flow attempts to address housing problems in the modern day world, including the issue faced by people for “moving away from traditional economic hub cities to different cities, towns, or rural areas,” amid the pandemic.
As per a report by the New York Times, Flow is “effectively a service that landlords can team up with for their properties, somewhat similar to the way an owner of a hotel might contract with a branded hotel chain to operate the property.”
“Adam is a visionary leader who revolutionized the second largest asset class in the world — commercial real estate — by bringing community and brand to an industry in which neither existed before,” said Marc Andreessen in the blog post. “It’s often under appreciated that only one person has fundamentally redesigned the office experience and led a paradigm-changing global company in the process: Adam Neumann.”
Seemingly, Flow will offer accommodation to those who work from home, with Neumann buying more than 3,000 properties across Atlanta, Fort Lauderdale, Miami, and Nashville for the company.