The Cult of We
Eliot Brown, Maureen Farrell
16 min
7 Key Points
4.3 RateWhat's inside?
Dive into the thrilling story of WeWork, its charismatic founder Adam Neumann, and the illusion of a billion-dollar startup, revealing the reality of Silicon Valley's "unicorn" culture.
You'll learn
1. What went wrong with WeWork and Adam Neumann?2. What's the real deal with startups and venture capital?3. How does leadership affect a company's success?4. Why is financial stability crucial in business?5. What are the risks of fast growth and big dreams in business?6. What can we learn from the WeWork saga?Key points
01Don't judge a book by its cover - Don't just go by what you see, dig deeper. WeWork seemed successful, but had hidden issues
"Never judge a book by its cover." It's a saying we've all heard, and it's a lesson that's perfectly illustrated by the story of WeWork and its founder, Adam Neumann. WeWork, the brainchild of Neumann, was born in 2008. It was a fresh concept, offering shared workspaces for tech startups and other businesses. It was a hit with the millennial crowd, and Neumann's charisma and big ideas propelled the company to dizzying heights. At its peak, WeWork was valued at a whopping $47 billion. From the outside, it looked like a success story in the making. But, as the saying goes, you can't judge a book by its cover. Behind the scenes, WeWork was bleeding money. Neumann's lavish lifestyle and reckless spending were draining the company's coffers. Despite the financial turmoil, Neumann was living the high life. He had a net worth of around $10 billion, owned seven homes, and had a large personal staff. The truth came crashing down in September 2019. WeWork's financial troubles were exposed, and the company's value tanked, losing about $40 billion in just a few days. Investors and employees were left high and dry, while Neumann walked away with most of his fortune intact. The WeWork saga is a stark reminder of the dangers of being fooled by appearances. Despite the shiny exterior, the company was teetering on the edge of financial ruin, all thanks to the reckless actions of its founder. So, the next time you're tempted to judge a book by its cover, remember the story of WeWork and Adam Neumann. It's a reminder to dig deeper and look beyond the surface before making any judgments or decisions.
02Every big win starts small - Every great thing starts with a simple idea. WeWork's idea of shared workspaces was small but game-changing
"Every big win starts with a tiny spark." This is the heart of Adam Neumann's story, the co-founder of WeWork, who took a small idea and turned it into a multi-billion dollar empire. Adam's story starts in his hometown, a place that felt too small for his big dreams. So, he packed his bags and headed to the city that never sleeps - New York. At just 27, he started a company called Krawlers, selling baby clothes. The unique selling point? Onesies and pants with built-in knee pads to help babies crawl. But there was a catch - babies only crawl for a few months before they start walking. Even though he missed this detail, Adam's business savvy and entrepreneurial spirit helped him make a decent profit from Krawlers. His interactions with suppliers and customers sparked new ideas. He tried different jobs, even modeling, but his heart always led him back to business. In 2005, Adam met Miguel McKelvey, a man who was his complete opposite - quiet, thoughtful, and always thinking before acting. Together, they decided to dive into the office space industry. The specifics of their business model were still a bit fuzzy, but Adam's persuasive skills came in handy when he met Jack Guttman, a landlord with space to rent. Adam convinced Guttman to invest in their idea, and they started working on the details. Adam saw their offices as more than just workspaces - he saw them as community spaces. This concept was a hit. Their venture, GreenDesk, took off when MTV rented one of their offices. In a nutshell, Adam Neumann's journey is a perfect example of how a small idea can lead to big success. He started with a simple idea - selling baby clothes - and ended up co-founding WeWork, a multi-billion dollar company. His story is a testament to the power of small ideas and the potential they hold when pursued with determination and creativity.
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03WeWork saw the change coming - WeWork understood that work culture was changing and people wanted more flexible workspaces
04The first signs of trouble - WeWork's downfall started with ethical issues like conflicts of interest and misrepresentation of financials
05Don't spend more than you earn - It's crucial to manage your finances well. WeWork's reckless spending led to its downfall
06WeWork's fall shocked the world - WeWork's rapid collapse was a global shock, reminding us of the risks in startup culture and the need for sustainable business practices
07Conclusion
About Eliot Brown, Maureen Farrell
Eliot Brown is a Wall Street Journal reporter covering startups and venture capital. Maureen Farrell is also a Wall Street Journal reporter, focusing on IPOs and capital markets. Both have extensive experience in business journalism and have co-authored "The Cult of We".
