Nov
13
2018
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WeWork picks up ANOTHER $3B from SoftBank

WeWork has picked up another $3 billion in financing from SoftBank Corp, not to be confused with SoftBank Vision Fund. The deal comes in the form of a warrant, allowing SoftBank to pay $3 billion for the opportunity to buy shares before September 2019 at a price of $110 or higher, ultimately valuing WeWork at $42 billion minimum.

In August, SoftBank Corp invested $1 billion in WeWork in the form of a convertible note.

According to the Financial Times, SoftBank will pay WeWork $1.5 billion on January 15, 2019 and another $1.5 billion on April 15.

SoftBank is far and away WeWork’s biggest investor, with SoftBank Vision Fund having poured $4.4 billion into the company just last year.

The real estate play out of WeWork is just one facet of the company’s strategy.

More than physical land, WeWork wants to be the central connective tissue for work in general. The company often strikes deals with major service providers at “whole sale” prices by negotiating on behalf of its 300,000 members. Plus, WeWork has developed enterprise products for large corporations, such as Microsoft, who tend to sign longer, more lucrative leases. In fact, these types of deals make up 29 percent of WeWork’s revenue.

The biggest issue is whether or not WeWork can sustain its outrageous growth, which seems to have been the key to its soaring valuation. After all, WeWork hasn’t yet achieved profitability.

Can the vision become a reality? SoftBank seems willing to bet on it.

Oct
08
2018
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WeWork taps Lemonade to offer insurance to WeLive members

WeWork has partnered with Lemonade to provide renters insurance to WeLive members.

WeLive is the residential offering from WeWork, offering members a fully-furnished apartment, complete with amenities like housekeeping, mailroom, and on-site laundry, on a flexible rental schedule. In other words, bicoastal workers or generally nomadic individuals can rent a short-term living space without worrying about all the extras.

As part of that package, WeLive is now referring new and existing WeLive members to Lemonade for renters insurance.

WeLive currently has two locations — one in New York and one in D.C. — collectively representing more than 400 units. WeWork says that both units are nearly at capacity. The company has plans to open a third location in Seattle Washington by Spring 2020.

Lemonade, meanwhile, is an up-and-coming insurance startup that is rethinking the centuries-old industry. The company’s first big innovation was the digitization of getting insurance. The company uses a chatbot to lead prospective customers through the process in under a minute.

The second piece of Lemoande’s strategy is rooted in the business model. Unlike incumbent insurance providers, Lemonade takes its profit up-front, raking away a percentage of customers’ monthly payments. The rest, however, is set aside to fulfill claims. Whatever goes unclaimed at the end of the year is donated to the charity of each customer’s choice.

To date, Lemonade has raised a total of $180 million. WeWork, on the other hand, has raised just over $9 billion, with a reported valuation as high as $35 billion.

Of course, part of the reason for that lofty valuation is the fact that WeWork is a real estate behemoth, with Re/Code reporting that the company is Manhattan’s second biggest private office tenant. But beyond sheer square footage, WeWork has spent the past few years filling its arsenal with various service providers for its services store.

With 175,000 members (as of end of 2017, so that number is likely much higher now), WeWork has a considerable userbase with which it can negotiate deals with service providers, from enterprise software makers to… well, insurance providers.

Lemonade is likely just the beginning of WeWork’s stretch into developing a suite of services and partnerships for its residential members.

Mar
13
2018
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WeWork expands its Flatiron School education business to London with £1M in scholarships

WeWork — the co-working startup valued at $20 billion with some 200,000 members across 200 locations globally — is continuing with its strategy of expanding into a wide array of adjacent operations to grow its business. Today the company announced that it will be expanding the coding-focused Flatiron School abroad, starting in London this June.

Alongside this, it’s also launching a scholarship program, offering £1 million in fees to people from underrepresented groups in tech to enrol in Flatiron classes, working with existing local groups like AllBright, Code Bar and Women Who Code to spread the word.

This is the Flatiron School’s first move outside of the U.S. for its physical classes — it had already offered online courses internationally before this — and notably it is also WeWork’s first significant educational effort since acquiring the New York startup last October for an undisclosed sum.

Since acquiring Flatiron, WeWork’s chief growth officer Dave Fano — who himself joined WeWork when the company acquired his own startup, building infomation modelling firm Case, heralding the start of the company’s acquisition spree — said that the idea has been to let Flatiron run business as usual, offering a variety of online and in-person coding and related courses. That is now changing as WeWork puts the acquisition to work, so to speak.

Expanding the kinds of services that it offers in European markets specifically is an interesting move for WeWork. When it first opened for business here in London, for example, people hiring out desks in other people’s offices, or working out of dedicated co-working spaces, was already a standard practice.

“There was lots of co-working already, so there was no need to educate the market on it,” Fano said in an interview. Hence, adding in more services and offerings is a way to help differentiate WeWork from the rest of the productivity pack. Education sits alongside a number of other services that WeWork has been developing, from offering all-in, optimised office spaces (complete with the ever-present glass decanter of fruit-infused water in the kitchen) both for individuals and running then on behalf of other companies, through to event planning (by way of its Meetup acquisition), and likely more down the line.

On the other side, this move is also an indication of how Flatiron, which had raised a modest $14 million in funding in its five years of life before getting acquired, is using the acquisition by the well-capitalised WeWork to upsize and compete against the likes of General Assembly and others who have doubled down on international expansion to build out their coding education businesses.

Flatiron School’s London operation will be based out of Finsbury Pavement, one of WeWork’s multiple London locations, and it will kick off with two courses, one a full-time software engineering immersive course that will last 15 weeks; and the other a part-time front-end web developer course that will run 10 weeks.

There have been a lot of efforts, both private and public, to help raise tech literacy among the workforces of the world, as industries and economies hope to train people for the next generation of employment as more legacy roles and processes tip into obsolescence, and all signs point to a more digital, connected and technological future.

Not all of these have been home runs, though, with many programmes failing to connect the dots between learning new skills and then applying them in actual jobs. And of course there remains a big digital divide between those who are already socially or economically challenged ever getting access to either the training or the subsequent work opportunities.

The company claims to have a strong success track record for its educational program.

“In the US, Flatiron School has set the benchmark for programming education with its community-first learning platform, market-aligned open-source curriculum, and outcomes-focused approach to education,” claims Adam Enbar, Flatiron School’s co-founder and CEO. “Since 2012, Flatiron has maintained a 99 percent graduation rate for its Software Engineering Programs in NYC and more than 2,000 students have graduated from Flatiron School to date, across both the on-campus and online programs. With our new Flatiron London location, we’ll be able to give more people access to attain the skills they need to create their life’s work.”

Meanwhile, a spokesperson for the school said that it also has a 99 percent placement rate for those looking for jobs in NYC in the area of the immersive program, and 97 percent placement overall in software engineering, iOS development and the fellowship program.

It’s a small start, but offering £1 million in scholarships alongside the launch can offer at least a small boost in trying to fix that problem. And for WeWork, which has now raised $7.3 billion in funding — including backing from the seemingly bottomless coffers of Softbank’s Vision Fund — a $1 million scholarship fund is small change, so hopefully it prove to be successful and it might consider how it can dole out more.

Updated with more stats.

Mar
13
2018
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WeWork expands its Flatiron School education business to London with £1M in scholarships

 WeWork — the co-working startup valued at $20 billion with some 200,000 members across 200 locations globally — is continuing with its strategy of expanding into a wide array of adjacent operations to grow its business. Today the company announced that it will be expanding the coding-focused Flatiron School abroad, starting in London this June.
Alongside this, it’s also… Read More

Mar
06
2018
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WeWork acquires SEO and marketing company Conductor

WeWork + Conductor WeWork is acquiring Conductor.
The two businesses might not seem like an obvious fit. Why would a coworking giant buy a company that’s best known for search engine optimization?
Well, Conductor co-founder and CEO Seth Besmertnik said that he and WeWork CEO Adam Neumann went to college together, and they’ve “kept reconnecting and reconnecting over the years.” More… Read More

Dec
20
2017
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WeWork’s Powered By We product is central to 2018 growth strategy

 WeWork had a big year in 2017. The seven-year-old company opened 90 new locations, doubling its global membership, and expanded into new cities in Latin America, Asia and Australia, and Europe and Israel. It is reportedly valued at $20 billion. While 2018 holds more of the same — WeWork plans to launch 1 million square feet of new space each month next year — the company also plans… Read More

Nov
30
2017
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WeWork has big plans for Alexa for Business

 Amazon is soon to announce Alexa for Business, and WeWork is one of the first partners to have hopped on the platform. WeWork’s vision is to use technology to help businesses make the most out of their physical space, all while customizing that space to each individual’s personal needs. The co-working giant has been on the Alexa for Business platform for about a month now, as part… Read More

Nov
29
2017
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Amazon is putting Alexa in the office

 The interface is evolving. What has long been dominated by screens of all shapes and sizes is now being encroached upon by the voice. And while many companies are building voice interfaces — Apple with Siri, Google with Assistant, and Microsoft with Cortana — none are quite as dominant as Amazon has been with Alexa. At the AWS reinvent conference, Amazon announced Alexa for… Read More

Oct
25
2017
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Techstars alums will now get discounted WeWork space

 WeWork and Techstars are buddying up, the organizations announced today. Techstars, the global accelerator program responsible for companies like ClassPass, Sphero and Digital Ocean, will be bringing its program into the WeWork community by running its curriculum at WeWork locations in Toronto, Boston, Kansas City, and New York City. As a part of the deal, Techstars alumni will now get a… Read More

Oct
23
2017
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WeWork acquires Flatiron School

 WeWork, the behemoth co-working company valued at $20 billion, has today announced the acquisition of Flatiron School. Flatiron School is a coding education platform that offers both online and offline classes to folks who want a career in the world of tech. The coding academy was launched in 2012 and has raised more than $14 million since inception, according to Crunchbase. The terms of the… Read More

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