Till not too long ago,
the co-founder and chief govt of We Co., had a expertise that many on Wall Road discovered baffling. Individuals cherished throwing cash at him.
In a January financing spherical, traders had been so beguiled by Mr. Neumann that his fast-growing office-space rental startup, previously often known as WeWork, achieved an implied valuation of $47 billion.
A skeptical individual might need questioned if that determine was acceptable for a corporation that misplaced $1.6 billion in 2018 on revenues of $1.82 billion, however Mr. Neumann’s backers believed.
This month, forward of a proposed preliminary public providing, the skeptics lastly pulled the hearth alarm. Confronted with mounting issues about its enterprise mannequin, governance and future revenue potential, the corporate thought-about slashing its valuation by greater than half earlier than deciding, early this week, to postpone the IPO.
Shortly thereafter, this newspaper reported new particulars about uncommon private offers Mr. Neumann had reduce with the corporate. It additionally revealed that the CEO smokes marijuana on personal jets, aspires to change into a trillionaire, needs to reside perpetually and wish to function president of the world.
None of this made it any simpler to grasp how he raised a lot cash.
The 40-year-old Mr. Neumann is by all accounts an distinctive salesman. However I think there’s one other, deeper cause for his investor enchantment.
For a couple of decade, the enterprise world has been bracing for the arrival of what would possibly…