It’s now well-known that WeWork is a bit of an isht-show.
Its last stated valuation of $47B (CBI profile here) is now under significant pressure. Reports early last week said it was going to be $25B-30B, and by the end of the week, rumors had it going out at less than $20B.
Ouch.
If the stratospheric price/sales multiples (see above) weren’t enough to scare folks, the CEO self-dealing (the private jet, the buying of a surfing technology company, the WE trademark, the ginormous loans) and the comically nonsensical “elevating the world’s consciousness” blather has made it an easy punchline and put a lot of pressure on the IPO.
IMO, what’s lost in this is whether WeWork might actually be a good idea.
If we separate out the market and idea of WeWork from the execution, foie-gras funding, and governance disaster that is WeWork, might it actually work? (I know — easier said than done.)
Basically, if another disciplined company was in this space, could it be a really big business?
Of course, the pundit talking point in this case is “co-working is f’d in a recession.”
These tend to be the same people who’ve been predicting the tech bubble will pop for the last 10 years. Sure — a recession might hurt co-working, but is commercial real estate immune to the impacts of a recession? And might co-working actually grow as enterprises are drawn to it as a variable expense (given they’re afraid of renewing 10 year leases with landlords in a recession)?
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Eat what you are
From DNA-based food recommendations to customizable 3D-printed vitamins, emerging innovations in nutrition are beginning to change the way consumers approach their health.
Millennials are 3X more likely than baby boomers to take care of banking business on their phones — and much less likely to walk into a physical bank branch.
Vivek Garipalli, CEO & co-founder, Clover Health ($1.1B valuation)
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CLIENT-EXCLUSIVE RESEARCH
Safe & sound
Investment in the cybersecurity space is heating up. So far in 2019, investors have already participated in 316 deals worth $6B+.
Just like Pegasus. Service horses, which can help people with blindness navigate the world, are now allowed on planes. Vox
Taste with your ears. Spotify is partnering with a winemaker to create playlists that it says will complement specific wines. Fortune
Left-leaning DNA. Researchers have identified genes associated with being left-handed and which may also boost verbal skills. CNN
Sitting in a tin can. A recent near-collision between satellites highlights the need for better space traffic management as more objects are launched into orbit. MIT Technology Review
Opportunity cost. A new report says that spending $1.8T on mitigating the effects of climate change over the next 10 years could generate $7.1T in net value. Bloomberg
All the data in this newsletter comes from CB Insights.
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