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Making sense of the WeWork S-1 (or trying to)

Hello and welcome back toEquity, TechCrunchs venture capital-focused podcast, where we unpack the numbers behind the headlines.
Today is our promised Equity Shot (a short-form, single-topic episode) on the WeWork S-1. You can read Kates notes here, or Alexs here as a place to start.
Given that we didnt know when the WeWork S-1 filing was going to make itself known, we put together this episode from TechCrunchs SF HQ, Alexs home office, and Kate inside a New York Blue Bottle Coffee. We were not about to let the locational issues stop us from having fun!
Where to begin! WeWork is growing like mad, but its hard to tell what its gross margins are. This makes its revenue quality hard to parse. (Alex tried to figure that out here, TechCrunch has even more good questions and notes here). What wasnt hard to figure out was that WeWork also known as The We Company is tectonically unprofitable on operating and net bases. And that the companys operations consume cash, while its investing activities torch the stuff.
WeWorks eclectic chief executive officer and co-founder Adam Neumann will maintain a majority of voting rights. Its not uncommon for founder-led companies to adopt this sort of voting structure and considering how central Neumann is to WeWorks identity, we werent the least bit surprised by this.
The companys IPO will make a lot of groups a lot of money. Mainly Benchmark, a respected venture capital fund, JP Morgan, and, of course, SoftBank, which has invested billions in WeWork and now owns more than 100 million shares.
And thats all for now. Dont miss our episode with Dan Primack that came out yesterday. A busy week, but a good one. Chat again soon!





















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