WeWork’s Valuation is Down 99% in the Last 4 Years!!!

Founded in 2010, WeWork was valued at over $1 billion in early 2014. At its peak in 2019, its valuation surged to $47 billion 💰, making it one of the most valuable start-ups globally.
 
The real estate company raised $22.2 billion in total funding across 23 rounds and is currently valued at less than $300 million 👀.
 
A failed IPO in 2019 raised concerns over WeWork’s ex-CEO’s leadership style, excessive spending 💸, and creative accounting practices. The COVID-19 pandemic also acted as a massive headwind for WeWork due to the global shift towards remote work.
 
It listed on the public markets via a SPAC merger two years back and outlined a strategy, emphasizing it would focus on key markets, reduce costs ⬇️, and target larger clients to ensure recurring cash flows.
 
Between 2020 and June 2023, it reported cumulative net losses of $11.4 billion 💵!!!
 
It entered into long-term agreements with property owners but leased them to tenants on a short-term basis, exposing it to massive risks 💀. A flawed business model, rising interest rates, and the work-from-home trend magnified the risks significantly.
 
Last month, the company stated, “Our losses and negative cash flows from operating activities raise substantial doubt about our ability to continue as a going concern.”