WeWork just filed to go public - Check out the company's journey from one SoHo building to a $47 billion valuation
Aug 14, 2019, 17:22 IST
WeWork founders Adam Neumann and Miguel McKelvey met — where else? — at the office.
Neumann also had an interest in real estate — he fell in love with a vacant warehouse on Water Street while he was working in Dumbo, Brooklyn.
In 2008, Green Desk became an early incarnation of WeWork. The company offered sustainable co-working spaces featuring recycled furniture, free-trade coffee, and green office supplies.
As the economy buckled under the weight of a failing real-estate market, Green Desk thrived. Neumann hypothesized that people liked being part of a community. Some who were laid off during the financial crisis started new businesses out of Green Desk.
Something clicked for Neumann and McKelvey. They saw that it was the focus on community, not sustainability, that drove people to Green Desk. In 2010, they sold their stake and began WeWork.
The first WeWork location was just 3,000 square feet in a tenement-style building in SoHo. It had creaky floorboards and exposed brick, which the founders power-washed clean.
Early on, Neumann and McKelvey imagined office rentals as part of an ecosystem, complete with apartments, gyms, and even barber shops, that served the concept of a communal life.
They used their flagship location in Soho (which reportedly turned a profit one month after launch) to host developers and investors and grow the WeWork brand.
WeWork opened four more locations in the next two years. It caught the attention of Benchmark, a top venture capital firm that made early bets on Twitter and Uber.
WeWork opened its first international office in 2014 in London.
In an effort to diversify its revenue streams, WeWork got into residential real estate in 2016. WeLive provides fully furnished micro-apartments. People can join these communities and instantly tap into amenities like free internet, maid service, and new friends.
In 2017, WeWork announced its WeGrow endeavor, a "conscious entrepreneurial school" for children 2 to 11-years-old.
WeWork bought Lord & Taylor's flagship store building in New York City in October 2017 for $850 million.
Also in October 2017, WeWork opened its first gym. Rise by We is located at 85 Broad Street in New York City. It offers yoga, boxing classes, and a "superspa."
WeWork confidentially filed IPO paperwork in December 2018 as The We Company. Neumann announced the filing four months later in April 2019.
With a $47 billion valuation, The We Company publicly filed its S-1 IPO paperwork on Wednesday.