October 23, 2015
Unicorns don’t exist, but WeWork is a “decacorn”, or what the tech industry calls a company valued at $10B. How’d a company that started in 2010 that provides co-working office space and owns zero commercial real estate earn a valuation that’s larger than many successful startups combined? The answer lies in having the best investor pitch deck ever.
Buzzfeed News obtained WeWork’s 2014 fundraising deck and attributes its success to factors that include: accounting practices (private companies don’t have to adhere to GAAP, or standard accounting procedures), profit-sharing with landlords, boosting revenue and diversifying their business offerings to include options like WeLive (co-living space).
Although WeWork exists between two ever-changing and rarely stable sectors, namely CRE and the tech boom, it has convinced investors that it is a sure bet. Its marketing tactics and ability to capitalize on FOMO (fear of missing out) to a younger market of workers, who are shifting towards freelancing over traditional jobs, has made it into the seemingly “mythical” giant that it is.