Valuation Of Adam Neumann's Flow Doubles To $2.5B, IPO Could Be In The Cards
Flow, the residential real estate firm started by former WeWork CEO Adam Neumann, saw its valuation double after its latest round of funding closed this month.
Flow raised more than $100M from investors in a Series B funding round, including additional investment from venture capital firm a16z, Bloomberg reported. The company is now valued at roughly $2.5B.
Ben Horowitz, the CEO of a16z, formerly Andreesen Horowitz, has been one of Flow’s largest backers. The latest commitment from his firm is on top of a $350M venture capital deal in 2022 that valued the company above $1B.
The Series B funding round gives a16z a 25% stake in Flow, with the majority of the company owned by Neumann’s family office and Flow employees. The company is aiming to be cash-flow positive this year, according to a letter to employees seen by Bloomberg.
Neumann is also eyeing a potential public stock offering. He told Bloomberg that Flow was “a company we could take public one day,” but “we don’t need to rush” on timing.
Flow officially launched last April with Flow Fort Lauderdale, a 631-unit luxury apartment building in South Florida that Neumann had acquired in 2022 when it was known as Society Las Olas.
“Between yourself, your neighbor and the world, our mission is bringing everybody together,” he told CNBC in an interview timed with the launch.
Shortly after rolling out the first property, it launched Flow Miami, a 44-story apartment building in Downtown Miami that Neumann acquired in 2021. A second tower is being built at that property as part of its phased development, and Flow announced in October that it would be selling units at the property as condos, marking its first move beyond apartment rentals and into a new Flow House brand.
A month earlier, Miami-based Flow announced plans for three apartment buildings in Saudi Arabia, one of which was already partially completed and open, with furnished apartments available for $4,262 per month.
Flow or Neumann-controlled entities own several other apartment and office buildings that aren’t yet part of the Flow brand. The real estate portfolio totals roughly 4,000 condo and rental units. Flow didn’t return Bisnow’s request for comment Friday morning.
The firm is in talks to sell a 425-unit Atlanta complex that Flow acquired in 2021, Bisnow first reported this week. Cortland, the prospective buyer, has already taken over branding on the property’s website.
Flow Life, the apartment arm of the business, purchased a 16-acre development site in Miami in January for $70.5M. Two months earlier, Flow and Israeli investment firm Canada Global paid $116M for an office building in a Miami suburb that had been approved for redevelopment into two 24-story apartment towers.
Neumann is best known as the CEO of WeWork during a disastrous attempt at going public that revealed self-dealing and runaway spending at the firm, eventually leading to his exit from the company. He tried to regain control of the coworking pioneer as it navigated bankruptcy last year but was repeatedly rebuffed by senior leadership.
In October, Flow announced it was launching Workflow, its own coworking concept.
