WeWork co-founder Adam Neumann secures a massive funding of $350 million for his real estate startup

WeWork co-founder and former CEO Adam Neumann has secured a massive funding worth $350 million for his newly-floated residential real estate startup “Flow”. Neumann, who left his previous venture in 2019, secured the finances from venture capital powerhouse Andreessen Horowitz, The New York Times reported.

Neumann was the Chief Executive Officer atWeWorkafter starting it with Miguel McKelvey in 2010. However, he was asked to leave after the company failed to go public. The funding already puts his new company’s valuation at $1 billion.

Andreessen Horowitz was founded in Silicon Valley by Marc Andreessen and Ben Horowitz in 2009. Earlier on Monday, Marc Andreessen praised Adam Neumann in a blog post on the Andreessen Horowitz website adding that they are “excited to partner with Adam Neumann and his colleagues on Flow”.

“Adam is a visionary leader who revolutionized the second largest asset class in the world — commercial real estate — by bringing community and brand to an industry in which neither existed before,” Andreessen wrote.

Andreessen’s post also claims that “United States has a housing crisis”. However, earlier reports say that Andreessen was opposed to a housing development plan in his city.

Neumann’s company will begin operations in 2023.

What will “Flow” do?

A New York Timesreport says that Flow is “effectively a service that landlords can team up with for their properties, somewhat similar to the way an owner of a hotel might contract with a branded hotel chain to operate the property.”

The report also says that Neumann has purchased more than 3,000 apartment units in Atlanta, Fort Lauderdale, Miami, and Nashville.

Andreessen’s post adds that the venture is on the path of “connecting people through transforming their physical spaces and building communities where people spend the most time: their homes.”

(With inputs from agencies)