Adam Neumann, the former WeWork chief executive officer, raised more money for his new residential real estate company, Flow, in a funding round that values the business at roughly $2.5 billion, according to sources familiar with the matter.
Flow secured more than $100 million from investors including a16z, according to the sources, who asked not to be identified discussing financing details. Neumann is also exploring longer-range plans for the business.
“I’m sure this is a company that we could take public one day,” Neumann said in an interview for Bullish with Sonali Basak. On timing, “we don’t need to rush.”
Neumann is well known for his time atop WeWork, creating an office workspace business that grew rapidly but had a botched initial public offering in 2019 and emerged from bankruptcy protection last year. After exiting WeWork, Neumann went on to create Flow, which has apartment buildings in cities including Fort Lauderdale and Miami. The business also has operations in Saudi Arabia.
The fundraising from a16z deepens the ties between the two firms. In 2022, the venture capital firm invested $350 million in Flow, valuing the company at more than $1 billion. While Neumann’s family office and Flow’s employees own the majority of the real estate company, a16z’s stake will jump to 25% in the latest funding round, from 20% previously, the people said.
Executives expect Flow to be cash-flow positive in 2025, according to a letter sent to employees Thursday. A representative for a16z didn’t respond to a request for comment.
Flow has also branched out into office-sharing with an operation called Workflow. While similar to WeWork in that it deals with office space, the new business seeks to build offices in properties that Flow already owns, or to partner with landlords to manage spaces it doesn’t, Neumann told Bloomberg last year.
