> In late 2015, WeWork was completing an investment round led by Beijing-based Hony Capital Ltd. that pushed its valuation to $16 billion. Mr. Neumann invited its CEO, John Zhao, to a party at 110 Wall Street, where WeWork was about to open its first WeLive dormlike apartment building. Toward the end of the night, Mr. Neumann led others to the roof of the 27-story building. There, guests passed around tequila shots. Mr. Neumann picked up a fire extinguisher and set it off, spraying Mr. Zhao and others with white foam.
> The deal went through. Mr. Zhao joined WeWork’s board in July 2016.
Spraying potential investors with a fire extinguisher... now there's a fundraising technique I won't be trying.
Probably only works if you're a 6'5, enigmatic, charismatic, handsome, youthful "Visionary" who is married to Gwyneth Paltrow's cousin. I'm just a 5'9, balding, middle-aged coding schmuck who's married to a school nurse.
Nothing! My wife loves her job and I love my wife. :) I'm just trying to point out that being married to a school nurse doesn't carry the same cache as being married to Gwyneth Paltrow's cousin.
Particularly for foreign investors, having a direct family connection to a US celebrity is a huuuge deal. Also she runs a $250 million consumer direct brand so I'm sure they were thinking all kinds of GOOP cross products and promotions in the WeWork locales etc.
Matt Levine wasn't so far off with his characterization of the Son Masayoshi Adam Neumann conversation:
"""
Son: What does your company do?
Neumann: We lease office buildings, spruce up the space and sublet it in small chunks.
Son: Hmm I invest in visionary tech stuff, this doesn’t really sound like my thing.
Neumann: Did I mention we are a state of consciousness. A generation of interconnected emotionally intelligent entrepreneurs.
Son: Okay yeah that’s more like—
Neumann: The world’s first physical social network. We encompass all aspects of people’s lives, in both physical and digital worlds.
Son: You’re crazy! I love it! But could you be, say, ten times crazier?
Neumann: You’re going to invest $10 billion in my company, which I will use as kindling to light the whole edifice on fire, and then when we are both standing in the ashes you will pay me another billion dollars to walk away while I laugh at you.
Son: All my life I have dreamed of meeting someone as crazy as you, but I never really believed this day would come.
Neumann: I’m gonna use your money to buy a mansion with a room shaped like a guitar, where I will play the world’s tiniest violin after all your money is gone.
Son: YES PUNCH ME IN THE FACE.
Neumann: Also I’ll rename the company “We” and charge it $6 million for the name.
> The deal went through. Mr. Zhao joined WeWork’s board in July 2016.
Spraying potential investors with a fire extinguisher... now there's a fundraising technique I won't be trying.