In 2008, the American economy was in the midst of a crisis in the mortgage market collapse, collapse of steep banks, companies are rapidly becoming cheaper, unemployment is rising. But the problem is some chance for others. Adam Newman, 29-year-old immigrant from Israel, saw the crisis as a chance for their ideas. To rent a large office, break it down into smaller zones and pass were on the street to professionals, providing them with the necessary infrastructure.
It was not just about the sublease Newman wanted to create a community that would unite specialists in various industries. The company grew rapidly. Newman, who had no major assets, failed to convince the success of their models of famous investors, including venture — project has been estimated at an incredible amount, at the peak of a — 47 billion dollars. The largest shareholder — Vision Fund, controlled by Softbank. But plans for an IPO crashed on the rocks of distrust of investors: the company is unprofitable, however, like many other “unicorns”. In the end, Newman was removed from his post as CEO. Why did it happen, says Director General IR “freedom Finance” Timur Turlov.
Timur Turlov, the General Director of IC “freedom Finance” “is a story in which I believe venture capitalists and professional investors, was much more cool perceived by investors, Wall Street investment banks. Despite the fact that SoftBank — one of its funds, which was a key investor, a few billion dollars invested in the company in recent years were largely almost one-on-one with Wall Street and other bankers did not share his view. When they started to negotiate with potential investors, a company with $ 40 billion fell by almost 10 billion And they canceled the IPO because I know that if they come to market, you’ll get a very cold reception. No wonder it caused such a reaction on the part of management of the company.”
This behavior of the investors and shareholders in the West are not uncommon. Steve jobs also once kicked out of Apple, when the company began to show poor financial results. If a company makes billions, all without a difference, on the plane which flies the user. But when things start to go bad, head I remember everything.
The labor collective WeWork was also unhappy, because there was no promise of higher wages and bonuses. Under pressure from the employees the plane now former CEO was put up for sale. In Russia to present this kind of situation difficult, says the managing Director of the staffing company “UNITY” Felix Kugel.
Felix Kugel, managing Director of the staffing company “UNITY” “Our cultural heritage from the point of view of heavy loads — we do it very, very difficult. WeWork not only faced with the indignation of their employees. She also suffered from a very sensitive process of negativity, which can deeply affect the value of the shares. That is, in the interest of shareholders. As soon as there is one or another thing that can cause a decrease in the value of the shares. The reason still lies in the following: in developed markets the legal process — legal process, the labour process, the process of financial — are very much intertwined. Any breath in one direction would mean the exhale in the other. We have discrepancies and separation processes is very wide, so the connection and direct effect — we are not threatened”.
But in Newman’s approach is similar to the Russian realities. When WeWork has applied for the IPO, it appeared that Newman lettings company to rent its own property. And investors saw this as a conflict of interest. This summer, Newman withdrew $ 700 million from its share of WeWork, and then bought five houses, put the money in a startup for the sale of medical marijuana, and $ 100 million — gave. The founders of unprofitable startups-“unicorns” learned to extract great personal profit. Investors should remember such risks.
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