Adam Neumann is Back

Adam Neumann, the founder of WeWork, is back. His and WeWork’s spectacular rise and fall has been chronicled in books, documentaries and a scripted television series.

Neumann has launched a new company called Flow wants to transform the residential rental real estate market. Notably, and surprisingly it has the financial support of Andreessen Horowitz. The backing of Andreessen Horowitz, considered royalty among early-stage investors, is a powerful sign of support, and perhaps a rebuke to Neumann’s critics, who have described his leadership of WeWork as a cautionary tale of corporate hubris.

Andreessen Horowitz is investing about $350 million in Flow, according to three people briefed on the deal. The investment is the single largest individual check Andreessen Horowitz has ever written in a round of funding to a company, values Flow at more than $1 billion before it even officially opens its doors…

Flow is expected to launch in 2023, and Marc Andreessen will join its board, these people said. Neumann is planning to make a sizable personal investment in Flow in the form of cash and real estate assets. “It’s often underappreciated that only one person has fundamentally redesigned the office experience and led a paradigm-changing global company in the process: Adam,” Andreessen wrote in a post on his firm’s website on Monday, explaining his rationale for investing in the company.

Neumann has purchased more than 3,000 apartment units in Miami, Fort Lauderdale, Atlanta and Nashville. His aim is to rethink the housing rental market by creating a branded product with consistent service and community features. Flow will operate the properties Neumann has bought and also offer its services to new developments and other third parties. The exact details of the business plan could not be learned.

Source: New York Times