Andreessen Horowitz, a US venture capital firm, has invested in WeWork founder Adam Neumann’s new and upcoming company Flow. According to The New York Times, Andreessen Horowitz has invested $350M in Flow, at a valuation of $1B, and hasn’t even launched yet.
Californian VC is stage-agnostic and has $19.2B assets under management across multiple funds. The company invests in seed to late-stage technology companies across the consumer, enterprise, bio/healthcare, crypto, and fintech spaces.
Neumann’s next project is Flow, which aims to provide a consistent housing experience across a branded apartment chain.
“Adam is a visionary leader who revolutionised the second largest asset class in the world — commercial real estate — by bringing community and brand to an industry in which neither existed before,” says Marc Andreessen.
Flow is set to debut in 2023, and Marc Andreessen, co-founder of Andreessen Horowitz, will join its board. Neumann, on the other hand, is planning to make a sizeable investment in cash and real estate assets into Flow.
Neumann bought 3,000 apartment units in Miami, Fort Lauderdale, Atlanta, and Nashville to build his branded apartments.
Flow will operate the properties Neumann has bought and offer its services to new developments and third parties. This will include creating a branded product with consistent service and community features. Currently, the specific details of the business plan cannot be learned.
“We understand how difficult it is to build something like this, and we love seeing repeat-founders build on past successes by growing from lessons learned. For Adam, the successes and lessons are plenty, and we are excited to go on this journey with him and his colleagues to build the future of living,” says Andreessen.
He adds, “We think it is natural that for his first venture since WeWork, Adam returns to the theme of connecting people through transforming their physical spaces and building communities where people spend the most time: their homes. Residential real estate — the world’s largest asset class — is ready for exactly this change.”
Adam Neumann and Miguel McKelvey founded WeWork in 2010, becoming the largest coworking space chain in the world. Three years back, Adam Neumann resigned as CEO of WeWork after he lost support from board members and backers. As a result, WeWork, once valued at around $47B, plunged to $9B during its IPO last year.
