After A $20 Billion Valuation, WeWork Gets Another $500 Million For Their Asia Expansion
Following a Series G funding round ($760 million), WeWork welcomes another $500 million for their plans to conquer South Korea and South Asia.
For those who still think WeWork is a startup, maybe this is the time to begin reconsidering. During July of this year, the company received $760 million in cash, in what has been called a new “Series G” funding round. With this new influx of money, WeWork has a valuation of $20 billion, according to Forbes.
The funds do not stop there as WeWork raised another $500 million for its expansion into the South Korean and South Asian markets according to The Real Deal. This new chapter includes, in a separate transaction reported by the Wall Street Journal, WeWork buying the Singapore co-working firm Spacemob. Spacemob is a co-working startup founded in early 2016 by entrepreneur Turochas “T” Fuad and backed by Vertex Ventures and Alpha JWC Ventures – neither parties have confirmed this deal.
With its latest valuation, WeWork has become a top player in the industry, putting aside major office REITs such as Boston Properties ($18.25 billion) and Vornado Realty ($17.7 billion). Even though WeWork has once again declined to comment on both the investment and current valuation, the documents filed publicly with the Delaware Secretary of State, on June 30th, confirm the transaction. From the information gathered, WeWork issued 13.2 million new shares of preferred stock at a price of $57.90.
Back in March 2017, SoftBank Group Corp invested $300 million in the company. It was rumored that this amount was only the first batch of a much larger funding round that is expected to total about $3 billion. The remaining cash will come from SoftBank’s $100 billion Vision Fund, which is the largest tech fund in history led by CEO Masayoshi Son. Of course, with Softbank on board in such a powerful way, it is expected to have a strong presence in Japan and across Asia.
WeWork has raised about $1.8 billion from investors and VC funds since it launching in 2010. For example, at the end of 2016, WeWork had 110 locations across the world. As of June 2017, the company now operates in 149 locations across 15 countries.
According to Adam Neumann, WeWork’s CEO, the company has about 120,000 members who pay an average of $650 per month. In addition, five to ten new sites open every month. Globally, the plan is to expand to cities like London, Beijing, Paris, and Detroit.
At this point, WeWork is generating $1 billion a year in revenue. The initial public offering is expected to be happening soon, according to Reuters. More updates to come…