WeWork To WeHome? Adam Neumann’s New Residential Real Estate Venture Gets Fresh US$350 Million From Andreessen Horowitz
“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.