Despite whatever happened to former WeWork (NYSE: WE) CEO Adam Neumann’s plan to tokenize carbon credits through his tech firm Flowcarbon, he has come back–this time, to “solve” the shelter problem. Venture capital giant Andreessen Horowitz announced on Monday its move to invest in Neumann’s new residential real estate venture Flow.
“The residential real estate world needs to address these changing dynamics. And yet virtually no aspect of the modern housing market is ready for these changes,” wrote the investment firm’s co-founder Marc Andreessen in the company blog. “And so, we are excited to partner with Adam Neumann and his colleagues on Flow, which is a direct strike on precisely this problem.”
The investment is said to be worth US$350 million, according to what the people familiar with the matter intimated to The New York Times. It will be the largest check written for a single round of backing in the fund’s history, the paper added. This is also set to value the venture at US$1 billion.
While the venture capitalist’s blog did not delve much into details, the project is described as aiming to “[transform] physical spaces and building communities where people spend the most time: their homes.” Andreessen drew parallels from the WeWork identity that “revolutionized the second largest asset class in the world — commercial real estate,” which is now being applied to the “world’s largest asset class,” residential real estate.
“Adam, and the story of WeWork, have been exhaustively chronicled, analyzed, and fictionalized – sometimes accurately. For all the energy put into covering the story, it’s often under appreciated that only one person has fundamentally redesigned the office experience and led a paradigm-changing global company in the process: Adam Neumann,” Andreessen added.
The venture capital firm’s crypto venture a16z also led the US$70 million funding round raised by Neumann’s Flowcarbon in May 2022. Around US$32 million of the total proceeds from the funding came from venture capitalists while the remaining US$38 million was raised from the sale of Flowcarbon’s carbon-backed crypto token Goddess Nature Token (GNT).
Neumann’s return to the investing scene follows after he resigned from WeWork, which he co-founded. The controversial Israeli-American businessman’s stint leading the coworking spaces firm has been marred with delayed IPO plans, a sexual harassment lawsuit, and an alleged marijuana trafficking incident. Prior to his resignation, some WeWork directors were seeking to remove Neumann as CEO after “a tumultuous week in which his eccentric behavior and drug use came to light.”
Information for this briefing was found via The New York Times and the companies mentioned. The author has no securities or affiliations related to FlowCarbon. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
