Dipo Olowookere
By Dipo Olowookere
Japanese multinational holding conglomerate, SoftBank, has released the sum of $6 billion to an American startup, WeWork.
This funding package is in the form of primary growth capital with the remaining $1 billion in secondary capital to be used to fund share purchases from investors and employees, making WeWork’s post-money valuation now at $47 billion.
A statement from the American company said this investment includes a previously announced $4 billion funding commitment from SoftBank in the form of a $1 billion convertible note and a $3 billion warrant.
WeWork and its subsidiaries have now raised more than $10 billion in total commitments from SoftBank since 2017.
“WeWork is disrupting a multi-trillion-dollar industry with a technology platform that provides a complete solution for space needs. WeWork has already experienced unparalleled growth and we are confident that with Adam’s vision and this growth capital the company will be able to aggressively pursue the enormous market opportunity ahead of them,” said Masayoshi Son, Chairman & CEO of SoftBank Group Corp.
WeWork today also announced the launch of The We Company. The We Company will establish WeWork, WeLive, and WeGrow as three distinct business lines that will expand upon WeWork’s existing efforts in these areas: WeWork’s mission is to create a world where people work to make a life, not just a living; WeLive’s mission is to build a world where no one feels alone; and WeGrow’s mission is to unleash every human’s superpowers.
“Through the extended WeWork network and the Meetup community, The We Company now touches approximately 5 million people around the world, with the funding to reach millions more. We’re driven by the impact we know we can have when we all work together with a shared intention. I am grateful to our employees, members, and our incredible partner in SoftBank for their commitment to our mission,” said Adam Neumann, Co-Founder and CEO of The We Company.
WeWork began 2019 with more than 400,000 members at 425 locations in 100 cities across 27 countries. Enterprise customers (members with over 1,000 employees) accounted for over 30% of the company’s total membership base. Forty-six per cent of enterprise members credit WeWork with giving them the freedom and flexibility to grow to new markets. As of September 2018, 30% of the Global Fortune 500 were with WeWork.
