Co working goes big time…
A 47 Billion, yes, billion dollar valuation, of WeWork has potential investors on two sides of the fence with a looming IPO. According to Jon Banister and Ethan Rothstein, Adam Neumann might actually be on to something.
“WeWork outlined its prospects for future growth, estimating a potential market opportunity in the trillions of dollars. In addition to the 111 cities WeWork currently operates in, it has targeted another 169 cities for expansion. In the combined 280 cities, it estimates a potential member population of 255 million.
Using the average revenue per member it has brought in this year, WeWork estimates a 255-million-person member base would give it a market opportunity of $1.6 trillion. Only 33% of WeWork’s “workstation pipeline” is open, and only 30% of those 604,000 workstations are in locations that have been open for two or more years, what the company defines as “mature.”
“When July began, WeWork was building 194,000 desks, had signed leases for 327,000 more and was in negotiations for 724,000 workstations that have not been finalized. The company pegs its total pipeline at 1.9 million desks, more than triple what it is currently operating.”
That’s a hefty growth plan, however, only time will tell if it comes to fruition. If it does, WeWork will become one of the most valuable companies in U.S. history.