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We is not a tech company.
I agree but are you saying that if it was a tech company, it would be worth the 48 billion? Also, is it THAT much different from AirBnB that is considered a tech company? What 'tech' does AirBnB offer that qualify it is a tech company?
As someone living in SF, I don’t think anyone in SF or SV would ever consider WeWork to be a “Silicon Valley” company in the same way that Uber or Twitter or Slack is. The company has 0 tech brand among employees (how many ex-FB or ex-Google engineers work there?) and outside of Benchmark’s early round none of the VCs are SV-based. Point is the media is making this out to be an indictment on some SV tech bubble but p…
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> "Point is the media is making this out to be an indictment on some SV tech bubble" Its not the media, I think its just true. Had WeWork IPO'ed under the same conditions a year ago, I think it would have been 'fine'. but the glut of SV unicorns losing money, hating investors, and slowing growth has got people highly concerned. This list of companies (slack, lyft, Uber, Pinterest, beyond meat, crowdstrike, tesla, spo…
You're missing Zoom, Pagerduty, and Cloudflare which are all doing phenomenally well.
As someone living in SF, I don’t think anyone in SF or SV would ever consider WeWork to be a “Silicon Valley” company in the same way that Uber or Twitter or Slack is. The company has 0 tech brand among employees (how many ex-FB or ex-Google engineers work there?) and outside of Benchmark’s early round none of the VCs are SV-based. Point is the media is making this out to be an indictment on some SV tech bubble but p…
> "Point is the media is making this out to be an indictment on some SV tech bubble" Its not the media, I think its just true. Had WeWork IPO'ed under the same conditions a year ago, I think it would have been 'fine'. but the glut of SV unicorns losing money, hating investors, and slowing growth has got people highly concerned. This list of companies (slack, lyft, Uber, Pinterest, beyond meat, crowdstrike, tesla, spo…
Edit: wow I didn't realize Slack had such a large market cap. That is a LOT of growth priced in, probably more than is justified.
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> how many ex-FB or ex-Google engineers work there? This sounds like an awful metric.
It really isn’t. FB/Goog compensation is still the benchmark as far as industry comp goes, so a private co really needs to be convincingly successful to attract smart, high paid engineers at top tech companies. If they can’t then it’s a completely valid signal that something is up - either comp is well below market, growth story is fishy, management is weak, or something else.
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It really isn’t. FB/Goog compensation is still the benchmark as far as industry comp goes, so a private co really needs to be convincingly successful to attract smart, high paid engineers at top tech companies. If they can’t then it’s a completely valid signal that something is up - either comp is well below market, growth story is fishy, management is weak, or something else.
Assumption: smart engineers only care about money.
WeWork is a real estate company and not a software company. They don't have any worthy propriety tech and their business model is collecting rent. How they were once valued at 47 billion just straight up doesn't make any sense.
If they could figure out how to do printing without PCClient, now that would be a business worth 47B all on it's own...
Semi related but Blue Apron will forever be my favorite IPO. 5 stock splits and 3 CEOs later, day one investors will receive roughly 2 pennies back for every dollar invested just 2 years ago. Only people who won were those who dumped free shares on the market (insiders), and maybe consumers for getting subsidized food of questionable quality. Once valued at 2 billion USD, a paltry 150 million will get the job done no…
Honest question if anyone knows more details. VCs these days are very focused on the "SaaS Quick Ratio": https://www.cobloom.com/blog/saas-quick-ratio-how-to-measure... (Blue Apron isn't quite a SaaS business but close enough for this metric). The idea is that it not only measures growth, but measures new customers in relation to churn, with the idea that it's a lot easier to have a long term successful business if y…