Controversial WePaintings founder Adam Neumann is raking in large quantities of investor money for his new actual property startup — however some project capitalists are cringing on the comeback plan.
After information broke on Monday that
“THIS IS DISGUSTING,” Kate Braddock, CEO of the startup Switch and a normal spouse on the W Fund, wrote on Twitter.
Braddock famous that the funding is the biggest unmarried test in Andreessen Horowitz’s historical past — and slammed the funding company for supporting a “directly white male” who’s the “founding father of one of the vital poisonous firms we’ve observed.”
Before Neumann surrender his activity as WePaintings’s CEO in 2019, he reportedly fostered a
Braddock mentioned that Andreessen Horowitz’s funding in Flow presentations that the project capital company is helping “perpetuate again and again a conventional machine that favors a small, homogenous set of founders.”
Julia Austin, an angel investor and senior lecturer at Harvard Business School, likewise wrote that the deal is a “robust sign from some of the international’s most sensible traders that unhealthy habits (by means of directly [white male]) isn’t just tolerated, however rewarded.”
Allison Byers, a tech investor and founding father of a startup known as Scroobius that appears to diversify tech, wrote that she used to be “clearly outraged” concerning the information.
“This is a serve as of ways VC has developed to perform,” Byers added in a LinkedIn submit. “Generational bias is in-built by means of the long-standing homogenous composition of decision-makers.”
Andreessen Horowitz co-founder Marc Andreessen nodded at Neumann’s previous in a weblog submit saying the funding, writing, “We know the way tough it’s to construct one thing like this and we like seeing repeat-founders construct on previous successes by means of rising from classes discovered.”
“For Adam, the successes and classes are masses and we’re excited to move in this adventure with him and his colleagues development the way forward for residing,” Andreessen added.
Another well known tech investor, Jason Calacanis, floated the concept Neumann’s new corporate — which is ready to start out running subsequent yr — is usually a unhealthy funding.
“If a startup is price $1b prior to it launches a product it’s almost certainly a rip-off,” Calacanis wrote in line with a tweet concerning the funding.
Neumann infamously raised cash for WePaintings at valuations as top as $47 billion in 2019. The corporate is price not up to $4 billion these days.
Details of his new challenge are scarce, however Flow reportedly comes to plans to create a “branded product with constant provider and neighborhood options” for residential constructions in US towns, consistent with the New York Times. The corporate will reportedly be offering its products and services to landlords along with proudly owning some flats itself.
Neumann has already purchased up greater than 4,000 flats price greater than $1 billion in Miami, Fort Lauderdale, Atlanta, Nashville and different US towns,
Andreessen Horowitz didn’t reply to requests for remark, whilst Neumann may now not be immediately reached. An inquiry despatched to every other considered one of this firms, Flow Carbon, didn’t obtain a reaction.
Source Link: https://nypost.com/2022/08/16/investors-slam-wework-founder-adam-neumanns-disgusting-comeback/