A few weeks ago, word got out that WeWork is opening a new coworking location in the London area that’s being coined “the world’s largest coworking location.”
Apparently, having the world’s largest coworking location isn’t enough for WeWork–as they seem to be aiming to get the world’s highest valuation within the flexible workspace and serviced offices industries.
Just this week, it was reported that WeWork is set to fundraise… yet again, but this time with a company valuation of $15 to $20 billion. That’s four times what they were valued at less than a year ago, and twice what they were valued back in July this year.
Their valuation wouldn’t be that much of a shock if it were not for the fact they they are a new company, with a mere five years of presence in the market. Even more of a wonder is what investors are truly thinking–as it’s no secret that WeWork has manipulated their prospects to look brighter than they actually could be.
In regards to this new valuation, Frank Cottle mentions that, “for a company that fudged their accounting in their recent investment pitch by not properly recognizing their fully amortized lease expenses–which is their largest expense–and by wildly forecasting workstation revenues hugely higher than the current or historic markets, I wonder at any investors that believe growth of a negative balance sheet real estate company is more important than responsible financial management of other people’s money.”
WeWork is not the first company to take advantage of backroom agreements and other tactics to get a higher valuation than would be expected based on rational metrics. Truly, if WeWork’s valuation is at 8 figures, shouldn’t Regus be at a 9 or even 10 digit valuation?
The Latest News
Delivered To Your Inbox
We at Allwork.Space are wondering what you think. Is WeWork really any better at servicing their clients and generating revenue….or just raising capital? What do you think?Share this article