[NEWS] Making sense of the WeWork S-1 (or trying to) – Loganspace

Whats up and welcome back to Equity, TechCrunch’s challenge capital-focused podcast, the build we unpack the numbers on the back of the headlines.

At the moment time is our promised Equity Shot (a fast-perform, single-topic episode) on the WeWork S-1. It is advisable be taughtKate’snotes here, orAlex’shereas a space to open.

On condition that we didn’t know when the WeWork S-1 submitting was as soon as going to catch itself known, we build aside collectively this episode fromTechCrunch’sSF HQ, Alex’s home space of job, and Kate interior a Original York Blue Bottle Espresso. We weren’t about to let the locational concerns cease us from having enjoyable!

Where to open! WeWork is rising like mad, nevertheless it’s hard to narrate what its sorrowful margins are. This makes its income quality hard to parse. (Alex tried to set up that outhere, TechCrunch haspowerful extra correct questions and notes here). What wasn’t hard to set up out was as soon as that WeWork —on the total is named The We Company— is tectonically unprofitable on working and catch bases. And that the firm’s operations delight in cash, whereas its investing actions torch the stuff.

WeWork’s eclectic chief govt officer and co-founder Adam Neumann will protect a majority of voting rights. It’s no longer unprecedented for founder-led corporations to adopt this perform of voting structure and pondering about how central Neumann is to WeWork’s identity, we weren’t in the least surprised by this.

The firm’s IPO will catch somewhat just a few groups somewhat just a few money. Mainly Benchmark, a revered challenge capital fund, JP Morgan, and, finally, SoftBank, which has invested billions in WeWork and now owns extra than 100 million shares.

And that’s pondering about now. Don’t cross overour episode with Dan Primack that got here out the day before this day. A busy week, nevertheless a correct one. Chat again quickly!

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