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We Work Fail

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Rahul Malik
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15 views

We Work Fail

Uploaded by

Rahul Malik
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 16

-

exam
falls
...
Rise ,
fall

Simp
ter
-
Wi S

⑨
Goodmorning ,

we work was once valued at


-

$40bn 1320 ,
000 Crowe E)

from being most valuable startup


to
filing bankrupcy
...

-
hi
- out
What went wrong find
- started in 2010

Model-space as service

Bes
a
-

·
it
-

Renovate

-Are
&
--
-

unit on
sti
sparbeastaene
Take a

in poste
mostly
Rent
-
ch
Game .

I
2018 started Business
I
secured $1 million
-
-

in seed round

- Raised $5m from diff


2012-16
I
-

-
vas and valuation -

increased to /$9
B
valuation Game .

Masayoshi Son became 'Messiah'


for we work .

- In 2017 , Need
at valuation
-
of b

- In 2019 ,
Anzbn
at utionof b
valuation Game
-

- -

C N 40x Increase

in valuation
in 7 years
-
.

- E
work ?
Why Is
azy-for
go

masayoshi son & other UCs

priartize growth over short

term losses .

"critical"
- we work
story being
to startup ecosystem .

->
wrong ?
went

In 2019 wework came


up with
-

an IP0 at $40 bn approx .

they disclosed
In
prospects
-

that wework was


-
never profitable
-

debt
a has
huge
.

-
finally valuation cut down to $9bn
in oct 4 to
go public .
wo
major
es

-
we work is Business with

·
High operating leverage -
means

fixed cost is
major portion of
Total cost -

high financial leverage-High


use
of Debt than
equity .
-

d increase
with
losses

Revennes
->

management was too much


biz
focused an expansion of
than
profitability .

->

Wework's habilities were

long term (base Rent) but

Assets were short term (cash)

This is why they lost


money .
Decompon

8
wewark had high valuation compared
in
to 1q which was
profits then
Things got worse post-IP0 .

%
⑧99
fall .
Scenario

Expensive WAH I High =


Bank
leases culture Intt
crupcy
+

payment -
①
--
Important to
focus biz
-

on

model &
fundamentals .

② to us
-
on sustainable
-

growth

0
3
--
-
softbank alone lost $14 by
due to we work
bankcruptcy .

(Never Invest blindly just


because others are doing)
Hope you varned something !
it for future
Do Save
Reference
Repost it to
help others .

see
you soon !
-
Part

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