The Rise and Fall of Adam Neumann

Adam Neumann has made a striking comeback, attempting to redefine the concept of living once again after his previous ventures.

Initially, Neumann launched a co-working enterprise (which he termed a “tech” company) that reached a staggering valuation of $47 billion. He then ventured into residential real estate through WeLive, aiming to revolutionize apartment living. Additionally, he established WeGrow, a school designed to nurture children's innate talents rather than follow traditional educational methods. His ambitions didn’t stop there; he aspired to raise global awareness. However, this all came crashing down spectacularly, leaving him with a wave pool but no elevated consciousness.

Neumann’s WeWork saga resulted in massive financial losses for investors while he walked away with astonishing wealth, leaving loyal employees with devalued stocks and the company struggling with colossal debt. His history, which also includes a failed baby clothing venture, should have sounded alarm bells for potential investors, yet the flow of capital continued unabated.

As time passed, the world seemed to forget the Neumanns—the extravagant private jets, the extravagant company retreats, and the numerous properties they owned, not to mention the ongoing challenges faced by WeWork. In that vacuum, Neumann reemerged, this time targeting the blockchain sector with a new company, Flowcarbon, which proposed selling “Goddess Nature Tokens” for tokenized carbon credits.

Did this venture succeed? Of course not. Despite securing $70 million from Andreessen Horowitz’s a16z, the initiative was “paused indefinitely” just two months post-announcement, further tarnishing his already questionable reputation.

Now, in a classic instance of men advancing despite failures, Neumann is back with another ambitious idea—reimagining living spaces. His latest venture, Flow (distinct from Flowcarbon), aims to assist individuals in “Living life in flow” with plans to launch in 2023. True to Neumann's style, the pitch is filled with grand aspirations, buzzwords, and enough charm to attract funding.

For a particular investment fund, this approach remains effective; a16z has made its largest single-round investment ever, pouring in a whopping $350 million, thereby valuing Flow at over $1 billion—even though the company only boasts a basic website and approximately 3,000 rental units.

While specifics about Flow’s operations are scarce, the company claims to address the nation’s housing crisis. However, the methods remain unclear, and it seems to involve community-focused services for apartment residents—echoing his prior WeWork pitch that attracted remote workers with promises of complimentary refreshments and recreational activities.