Adam Neumann appeared on Forbes’ list of the world’s richest people, earlier this year, with a net worth of $4.1 billion. Now, Forbes is lowering the estimate of his wealth to at most $600 million.
The WeWork co-founder Neumann’s abrupt fall from the billionaire ranks is the result of the co-working company’s failure to complete an initial public offering, pulling its plan 47 days after publicly releasing an offering statement filed with the Securities and Exchange Commission.
Neumann was forced to resign as CEO amid the backlash but still owns an estimated 18% stake in the 9-year-old company.
He first appeared on Forbes’ World’s Billionaires List in 2016 with an estimated net worth of $1.5 billion. He was 36 years old, and private investors had just valued WeWork at over $10 billion.
In the last 3 years that followed, SoftBank plowed billions more into WeWork in multiple funding rounds, ultimately valuing it at $47 billion in January.
WeWork is a global sensation for its amazing, modern and groovy atmosphere work-spaces and other services provided within the company model including health insurance and business software.
The first coworking space leased out by WeWork was on the corner of Grand and Lafayette street in New York City. The original office is still under WeWork.
The founder of the world’s most valued office-sharing company has encashed some of his stake in WeWork in recent years. He has also borrowed money against his holdings.
In April, WeWork made a confidential IPO filing, valued at $47 billion in the most recent funding round in January.
In September, amid the growing Founder-Investor Feud globally, WeWork made itself the lastest inductee. Adam Neumann, Co-founder & Former CEO of WeWork once quoted to the press, “I want to elevate the world’s consciousness”.
A few days ago, Neumann became the latest victim of the underlying growing trend where founders are increasingly finding themselves at odds with the investors.