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Week in Review: You break it, you buy it

Hey everyone. Thank you for welcoming me into you inbox yet again.
Last week, I talked about Zuckerbergs quest to tell us that Facebook has governing principles when hes really just building the stairs one step at a time.
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The big story


Plenty of ink has been spilled on WeWork and SoftBank and WeWorks Adam Neumann, and yet it still feels like not nearly enough people are talking about it.
The startups post-S1 saga has just been just so messy that its understandable one could only grab a sneaking glance of headlines before having to look way.
One reason everyone is talking about it because Neumanns maneuverings have created an anthology of sketchy founder dealings thats nearly cartoon villain worthy. Hes got the eccentricities of Jack Dorsey, the frattiness of Evan Spiegel and the change the world delusions of Elizabeth Holmes. Critiques of WeWork werent all that sparse preceding its S-1, and yet many of venture capitals talking heads had some kind of founder-friendly admiration for someone that seemed to had bent the worlds heftiest venture capital fund to his will.
Its far beyond the pleasantries now, what happens to WeWork could deeply shape how late-stage venture capital operates. SoftBank was raising the second vision fund just as WeWorks shit hit the fan and now its the funds deepest embarrassment and a financial commitment theyve poured $18.5 billion into. If WeWork craters, that second vision could fall far short of its aspirations. Plenty of Silicon Valleys investors would be happy to see control shift to more even-handed institutional forces who did not have capital commands that could set terms with a glance. Nevertheless, there are an awful lot of unicorns that have depended on SoftBanks growth capital up to this point who would be in danger of being left high and dry.
At this point, SoftBanks sunk costs have led the desperate fund to go all-in on a sans-Neumann WeWork. They will have to shape the business on their own. They enabled Neumann and now they are left with the task of reverse engineering a disaster into a great turnaround story.

SoftBank says it has now invested $18.5 billion in WeWork, more than the GDP of Bolivia, which has 11.5 million people
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