WeWork´s Failed IPO: What Does the Future Hold for Financing Digital Tranformation
WeWork was highly successful in capturing funds through successive rounds of capitalization and expanding its businesses. It was one of the leading workspace proprietors in New York and London. The problem centered on the fact that its losses grew at the same pace as its sales and value in capitalization rounds. The high value of the company set the bar very high for its IPO, to the extent that it didn?t have necessary demand from investors.
Collection: IESE (España)
Ref: F-952-E
Format: PDF
Number of pages: 20
Publication Date: Jul 28, 2020
Language: English, Spanish
Description
WeWork was highly successful in capturing funds through successive rounds of capitalization and expanding its businesses. It was one of the leading workspace proprietors in New York and London. The problem centered on the fact that its losses grew at the same pace as its sales and value in capitalization rounds. The high value of the company set the bar very high for its IPO, to the extent that it didn?t have necessary demand from investors.
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Year: 2019
Geographic Setting: Estados Unidos
Learning Objective
Characterization of the WeWork business: is this a real estate or a tech business?
Do the strong increases in income and losses justify the value it received in capitalization rounds? Why did it have this valuation? Who are the investors and what are their motivations? What are the advantages and disadvantages of going public?
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