The Real Deal New York

WeWork now valued at $1.5 billion

Mort Zuckerman, JPMorgan among lead investors in shared office space firm

November 07, 2014 04:15PM

From left: Adam Neumann, Mort Zuckerman and Miguel McKelvey

From left: Adam Neumann, Mort Zuckerman and Miguel McKelvey

WeWork, a shared office and co-working space provider founded in 2010 by Adam Neumann and Miguel McKelvey, is now valued at $1.5 billion after securing a $150 million investment from JPMorgan, Boston Properties’ founder Mort Zuckerman, and others.

Neumann and McKelvey are likely to seek out another round of funding in 2015, Forbes reported. The additional capital, the magazine noted, could see the company’s valuation shoot up to $6 billion. WeWork estimates it will generate revenues of $400 million in 2015 — more than twice its 2014 projected revenue of $150 million.

“Adam understood in a very serious way that we are in a new culture,” Zuckerman told the magazine. “I found it extraordinarily creative and original after being in this business for God knows how many years.”

WeWork is the fastest-growing shared office space provider in New York City, with recent large deals at Jared Kushner’s Dumbo Heights complex and 79 Madison Avenue in Nomad.

The company is also taking a 200,000-square-foot lease at the Brooklyn Navy Yard, a $300 million redevelopment co-owned by Boston Properties. Over the next 12 months, WeWork plans to expand to 60 national locations. It currently has 21. [Forbes]Hiten Samtani

  • Can someone explain to my why the attraction to this business model?

    • Lou

      Flexibility and culture….if you are a company and want to lease space, why go through the hassle of negotiating leases, setting up utilities, doing a build-out, and so on when you can work in a pre-set up environment with no pre-set lease (e.g. you can go month to month) and take more space if you need it or stay small if you don’t. You are also immersed with other companies who are also in similar situations so there is a culture and feel to the place.

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