There was a time when production of certain objects or even services would be dealt with by a person independently. Now that isn’t the scenario anymore. We as modern humans expect everything to be done by others, be it looking for domestic help or any object. Long gone are the days when our moms used to make homemade jams but now even that is bought from the grocery store. If everything is done by companies, then it is obvious that these companies need a place to reside in. With the increasing expenses and lack of space, the concept of coworking office spaces emerged. And currently, the global leader in this field is undoubtedly WeWork.
This New York-based company was founded in the year of 2010 and has achieved tremendous success within the span of less than a decade. The reason behind the growth spurt of the company is the growing trend of coworking office spaces. Adding to this, WeWork is one of the initial companies to offer such a facility. Its monopoly in the real estate market in these terms has given it the upper hand. Due to its constant progress, SoftBank and Vision Fund have decided to invest $4.4 billion in the company.
WeWork on a growth spurt
SoftBank is well known for its enormous investments in companies catering to various fields. Its latest interest is WeWork. The pace at which this startup is growing has impressed this Japanese conglomerate. SoftBank along with its Vision Fund will invest $3 billion into WeWork. This will be done through primary as well as secondary shares. News about this investment was officially out on Thursday. The rest of the $1.4 billion of the investment will be in the form of three subsidiaries. The subsidiaries are segregated in WeWork Pacific, WeWork China, and WeWork Japan.
Currently, the market value of WeWork is worth $20 billion. In the press release about this investment, its co-founder and CEO Adam Neumann states that the company is humbled by such a strong endorsement of its purpose. SoftBank CEO Masayoshi Son aims to make the most of the company’s proprietary data systems and technology. By supporting its international expansion, it may give birth to a new wave of productivity worldwide. This investment by SoftBank is a part of its Vision Fund aim to invest at least $93 billion in the tech world. This is why they want to make use of WeWork’s technology.