Adam Neumann has cashed out more than $700 million from WeWork ahead of its highly anticipated IPO, according to the WSJ. This revelation coincided with the co-working company scheduling plans to host an analyst day for Wall Street banks on July 31. It was valued at $47 billion in its latest Softbank-led investment round in January.
- The joke’s on you: Investors in startups generally frown upon founders who cash out large chunks of shares ahead of a public-markets debut, because it raises questions about their confidence in the company.
- Timing: The company plans to move ahead with its IPO either later this year or early next.
- Worth Noting: Neumann’s company is looking to raise $3 to $4 billion in debt before it goes public, and continues to hold discussions with Goldman Sachs and JPMorgan. This would allow itself to pitch potential investors in an IPO as having sufficient funding to see itself to profitability. WeWork said earlier this year that its losses nearly doubled to $1.93 billion, while revenues reached $1.82 billion.