Fidelity, other investors pump $400M into WeWork

Startup now valued at $10B, bigger than all but 3 publicly-traded office landlords

New York /
Jun.June 25, 2015 09:34 AM

Fidelity Management & Research Co. and existing investors pumped $400 million into WeWork in a new fundraising round that values the shared office startup at $10 billion – twice its December valuation.

Following this latest round of funding, only three publicly traded landlords exceed the startup in size, the Wall Street Journal reported. WeWork is now worth more than half of Boston Properties, which is valued at $19 billion.

Mort Zuckerman, the chair of Boston Properties, is a backer of the startup, as are JPMorgan Chase, Harvard Management Co., Benchmark Capital and Goldman Sachs, Wellington Management and T. Rowe Price Group.

WeWork chief executive officer Adam Neumann told the Journal that he hadn’t been looking for more funding. “We didn’t seek this out,” he said, “We kept having offers and kept ignoring them.”

But, with great funding comes great responsibility.

“This is an increase in responsibility, an increase in expectations,” the 36-year-old CEO told the newspaper. “A higher valuation with more cash invested by investors just means you need to deliver higher returns.”

In December, the company’s valuation was roughly 100 times its operating income, according to the newspaper. Most traditional landlords, however, trade at about 20 times their earnings. [WSJ] — Claire Moses


Related Articles

arrow_forward_ios
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
WeWork CEO Adam Neumann (Credit: Getty Images and iStock)

WeWork’s side businesses are fizzling

WeWork’s side businesses are fizzling
Sarah Pontius (Credit: Union College)

Another head rolls at WeWork

Another head rolls at WeWork
From left:  Joseph Chetrit, 404 Fifth Avenue and WeWork CEO Sandeep Mathrani (Photos via Wikipedia Commons; Google Maps)

WeWork battles Chetrit Group over Midtown lease

WeWork battles Chetrit Group over Midtown lease
Warburg Realty's Clelia Warburg, Breather's Brian Murphy and InstaClosing's Peter Zinkovetsky (iStock)

Proptech’s winners and losers in 2020

Proptech’s winners and losers in 2020
Katerra CEO; SoftBank CEO Masayoshi Son and Katerra CEO Paal Kibsgaard (Photos via Katerra; Getty; iStock)

SoftBank bails out Katerra with $200M cash injection

SoftBank bails out Katerra with $200M cash injection
The Covid-19 vaccine is being distributed across the country, but it won’t provide an immediate cure for office landlords. (iStock)

Covid-19 vaccine won’t be immediate cure for office market

Covid-19 vaccine won’t be immediate cure for office market
WeWork CEO Sandeep Mathrani (Getty)

WeWork losses continue but firm sees glimmer of hope

WeWork losses continue but firm sees glimmer of hope
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...