WeWork was a start-up valued at $47bn that later went public for just $8bn with a founder who wanted to “elevate the world’s consciousness” and invented his controversial financial metric, “community-driven EBITDA.” Link
Now a16z has invested $350M into Flow
without anyone knowing what it does. The best speculation I’ve found so far is this:
Flow aims to be a real estate investor, landlord, and property manager of a highly amenitized, tech-enabled residential building network in which residents will be renting a Flow unit with the option to purchase that unit over time. @s_afiaziz
Simon Taylor from Fintech Brain Food argues that another reason for a16z investing in Flow might be that they (and other large VC funds) have raised so much money it would be impossible to deploy as $10 - $50m checks in the lifetime of a standard venture fund. Real Estate is, however, an asset class that can swallow this much money.
This will surely be an interesting story to follow in the coming years!
Whatever you say about Neumann as a founder, he did change the office rental experience for start-ups and multi-billion dollar company in public markets, generating billions annually.