Adam Neumann has attracted his largest outside investment since January 2019, when Masayoshi Son’s SoftBank was valued at $47 billion at WeWork, the office space company he co-founded that is now valued at $4 billion.
Andreessen Horowitz, a Silicon Valley venture capital firm, said Monday it has supported Flow, residential real estate firm Newman Construction, since they resigned as chief executives of WeWork after a failed attempt to go public with the loss-making business. Still working.
A person familiar with the matter said Andreessen Horowitz had invested $350 million. In May, it invested an undisclosed amount in FlowCarbon, another company backed by Newman and his wife Rebekah that is trying to make carbon credit markets more transparent through the use of blockchain technology.
In a blog post, co-founder Marc Andreessen hailed Newman as “a visionary leader who revolutionized the world’s second largest asset class – commercial real estate” and now rocked the class.
“It’s often underestimated that only one person has radically transformed the office experience while leading a paradigm-shifting global company: Adam Newman,” he said.
Referring to previous controversies, Andreessen said: “We like to build on past successes while also building on the experiences learned from repeat founders. There are many achievements and lessons for Adam.”
Newman, who left WeWork a billionaire, has given few details about how Flow plans to transform the housing industry: The only words on his website are “life in transition” and “the year ahead, 2023.” A spokesman for Newman declined to comment.
But in an interview with the Financial Times in March, he said he was taking advantage of the housing and affordability crunch, which is forcing more young Americans to rent rather than buy.
He said at the time he saw “tremendous opportunity” in apartment buildings to provide a greater sense of community, targeting cities like Atlanta, Austin, Miami and Nashville that offer young people job growth, cultural appeal and more. add to the growing population. good weather
Andreessen, an early supporter of Facebook and Airbnb, echoed Neumann’s argument that the US was facing a housing crisis and that residential real estate was ripe for disruption.
He gave few details about how Flow would work, but said it would “involve a rethinking of the entire value chain, of how buildings are purchased and of how residents interact with their buildings.” . The way the value is distributed among stakeholders”.
After leaving WeWork, Newman began buying multimillion-dollar affordable rental homes to fund the start-up.
“We started out buying these properties, but then I started going into buildings, just realizing, and it felt like there was more that could be done to improve the lives of these tenants,” he said in March . FT said.
The WeWork co-founder had previously ventured into housing with the launch of WeLive, dormitory-style apartment buildings with communal spaces. However, its successors have refocused WeWork on its core office offering.
Andreessen garnered widespread attention early in the pandemic, rallying in Silicon Valley to put more of his money into building tangible assets.
In an essay titled “It’s Time to Build,” he attacked a “smog complacency” that he says has invested little in all manner of construction and construction, resulting in “apartments in places like San Francisco,” among other things have. Prices skyrocketed, making it almost impossible for ordinary people to move on and take the jobs of the future.”
Earlier this year, however, Andreessen and his wife, philanthropist Laura Arrilaga Andreessen, decided to change zoning rules in the affluent Silicon Valley town where they live to allow for apartment building, according to The Atlantic. attacked the suggestion. The development plan was dropped in July.