Neumann’s New Hustle

Remember Adam Neumann, the founder and former CEO of WeWork? The one surrounded by controversy over his leadership and self-dealing who left the company with a massive payout amid a failed IPO?

Yep, he’s back.

We know, we know, we just did this a few months ago when he raised a ton of money for his blockchain-based carbon credit company, Flowcarbon.

We haven’t heard much about that recently, but this time he’s coming to a home near you with his new residential real estate company called “Flow.” ๐Ÿ˜๏ธ

The company’s website offers little details except that it should launch in 2023. However, The New York Times 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 company.”

While the business is more or less still at the idea stage, it just received $350 million in funding from venture capital firm Andreessen Horowitz. ๐Ÿ’ฐ

The firm outlined in a blog post its thesis for its largest single-check investment ever, focusing on the ongoing housing crisis and Adam Neumann’s past success in transforming the real estate space.

Regarding the investment in Neumann, the blog post essentially says that his efforts at WeWork were largely underappreciated and that the firm loves “seeing repeat-founders build on past successes by growing from lessons learned.”

That’s certainly one way to put it.

We’ll have to see if this time is different, but the massive raise ruffled a lot of people’s feathers today (and rightfully so). ๐Ÿ˜ค

Finally, to add to the lols, the cryptocurrency $FLOW shot up on the news. I guess the algorithmic traders’ systems haven’t quite figured out how to differentiate between ticker symbols just yet.

Another win for the efficient-market hypothesis and another saga to watch in the years ahead. ๐Ÿคทโ€โ™‚๏ธ

Just How Cool Have Funding Markets Gotten?

Last week Pitchbook released its Q2 2022 U.S. VC Valuations Report, which had some interesting stats about the current environment. ๐Ÿ“

Early-stage valuations are beginning to reflect broader economic uncertainty, as quarter-over-quarter median pre-money valuations saw their first decline in ten quarters. The median pre-money valuation for early-stage VC was $52 million, down 16.1% YoY.

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a16z Announces Record-Breaking $4.5 Billion Crypto Fund

VC goliathย Andreessen Horowitz (a16z) announced its fourth, and largest, crypto fund today โ€” they hope to capitalize on discounts in the marketplace as the “golden era of web3” ramps up.

a16z’s newest crypto fund is more than double the size of its last one, which it raised last June. At $4.5 billion, it will be not just a16z’s biggest crypto fund, but the biggest one that the world of web3/blockchain/crypto has ever seen. It will take the crown from the Paradigm One Fund, which announced it pooled a total of $2.5 billionย in November 2021.

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All Eyes on PE ๐Ÿ”Ž KKR Raises $5 Billion for New Fund

KKR & Co is an NYC-based investment company that just unveiled plans for its first fund ever investing exclusively in mid-size companies. KKR is trying to raise $5 billion for the new fund. ๐Ÿ’ฐ

KKR, formerly known as Kohlberg Kravis Roberts & Co, is a private equity GIANT. Weโ€™re talking roughly 280 private equity investments worth $545 billion. The firmโ€™s new fund for mid-size companies, called โ€˜Ascendant,โ€™ will target a variety of sectors, including financial services, healthcare, industrials, consumer, technology, media and telecommunications.ย 

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The Early-Stage Explosion ๐Ÿ’ฃ

The startup space was hot in 2021 ๐Ÿ”ฅ โ€” over the last year, capital has been flowing into seed-stage and early-stage startups. As a matter of fact, a record of $93 billion was invested in early-stage companies last year. But could that trend backfire soon??ย 

From web3 to edtech, capital from VC firms flooded a variety of sectors in 2021. During and after the pandemic, tech-based startups provided a plethora of early-stage investing opportunities so innovative and enticing to investors that the median valuation of most seed or early-stage startups ballooned last year. ๐ŸŽˆ ๐Ÿ’ฃ In 2021, the median valuation of an early-stage U.S. startup was $26 million โ€” in 2020, that median valuation was $16 million.

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