Why the WeWork Founder Is More Likely to Raise Money Than You

Why The Wework Founder Is More Likely To Raise Money Than You - Gettyimages 957210938 510795

The news that the founder of formerly-high-flying WeWork founder Adam Neumann received “about $350 million” in funding for his new real estate firm, Flow, from one of the marquee venture capital funds, Andreessen Horowitz, set the startup world abuzz — and for many, not in a good way.

Of course, WeWork was the company that raised a reported $17 billion at a $47 billion valuation, only to go through a heavy restructuring that saw Neumann removed from his position — though he walked away with an estimated $1.7 billion in cash and stock, and a severe reduction in the valuation of the company. The company eventually went public at a valuation of around $9 billion, and today trades at around $4 billion — less than 10 percent of where it was when Neumann last raised money as leader of WeWork.

For many who’ve struggled to raise investment — and especially among women and people of color, who face great difficulty raising funds for their startups — this was challenging news to hear.


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This article was written by Steven I. Weiss and originally published on www.inc.com