Silicon Valley venture capital firm Andreessen Horowitz is investing $350 million in billionaire Adam Neumann’s Flow, a residential real estate startup. Adam founded office-sharing company WeWork, pushing it to $47 billion before it came down to earth at $4 billion.
But that is not the story; the story is that the VC is writing this cheque at a valuation of $1 billion! Yes – take $350 million before you have a bank account!
Why is that possible? Adam has a ring. Yes, he has bred a unicorn and VCs never forget. They believe that he can win again. And that is how the world is – those who have rings are recycled in politics, sports and in markets.
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WeWork founder Adam Neumann has managed to snag a surprising backer for his new venture: VC firm Andreessen Horowitz. The Silicon Valley giant that has backed companies including Facebook and Airbnb is investing about $350 million in Flow — the largest funding round check it has ever written to a company. Flow aims to transform the residential real estate market. Tech watchers are divided over whether Andreessen Horowitz is making a wise investment: WeWork imploded under Neumann’s watch, seeing its market value plummet from $47 billion at its peak to $4 billion today. (LinkedIn)
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All the talks about experimenting and giving inexperienced people opportunities to learn are just hot air, whenever the stakes are high and a lot of money is involved, everyone automatically reverts to ‘tested and trusted’ hands. It happens all the time, and it will still happen tomorrow, across sectors, public and private.
Even to cut your hair at a barbershop, you will still want an experienced hand to take care of of your hair, or how many people donate their heads for a newbie to learn work with? Leave talk for now.
When you give money to someone who has done money things in the past successfully, if he destroys your money, you simply term it ‘market turbulence’, but untested hands cannot enjoy such fancy phrase, in their case, it’s due to their inexperience and bad judgment…
Until you are distinguished in something, you have to keep scrapping and managing crumbs. It is what it is.