In 1999, after a short conversation of 6 minutes, Masayoshi Son invested $2 million in Jack Ma's Alibaba. Fourteen years later, this investment brought him a return of 2,9 times!

Uber invested by Sun Zhengyi was listed at a valuation of $75.4 billion, but it fell below the issue price after listing, and then it fell all the way. At present, the market value is only $5.4 billion.

Sun Zhengyi, who was once very optimistic about * * * enjoying the economy, was given a sap by * * * enjoying the economy. This is just the beginning, and WeWork gave a second stick!

WeWork's listing dream is broken!

On August 14th, WeWork confidently submitted an IPO prospectus to the US Securities and Exchange Commission, hoping to go public at a valuation of US$ 47 billion. At that time, the spotlight of the whole world was on this star company.

But after that, everything didn't go as smoothly as expected. WeWork was greeted by thousands of analysts with microscopes, who made a rigorous examination of WeWork's finance, business model and even management.

for a time, all kinds of problems were put in the spotlight, and the most critical issue was that WeWork has not made a profit so far. According to the prospectus, WeWork has actually been losing money in recent years.

from 216 to 218, WeWork's revenue was

436 million US dollars, 886 million US dollars and 1.821 billion US dollars respectively.

But the net losses were:

43 million US dollars, 933 million US dollars and 1.927 billion US dollars respectively.

In other words, WeWork has been making huge losses and has no profit. In the first half of this year, WeWork's revenue was $1.535 billion, but it still had a net loss of $94 million, and this loss has a tendency to increase. In the same period of 218, its revenue was $764 million and its net loss was $723 million.

years of losses have made analysts and investors stop buying it!

American stock market has been paying eye-popping valuations for unprofitable IPOs. When we arrived at WeWork, the myth came to an abrupt end, and investors were no longer willing to pay for over-investment.

The failure of WeWork's IPO marks the end of an era, and the days when American investors provided generous funds for unprofitable enterprises are over.

analysts questioned WeWork's profitability and business model, but WeWork didn't come up with enough convincing reasons, so WeWork's valuation was reduced again and again.

from the initial $47 billion to $25 billion, and then to $15 billion or even $1 billion, WeWork has not been recognized by investors and analysts.

if it goes down again, not only will the principal of Sun Zhengyi's investment in WeWork not be recovered, but it will also be embarrassing!

under the constant pressure from external investors such as Softbank, WeWork officially announced that it would withdraw its prospectus submitted to the US Securities and Exchange Commission and terminate its listing!

the way to explore WeWork's business model

in 21, WeWork was established in new york. so far, more than 5, people in more than 12 cities in 35 countries around the world have worked in wework.

WeWork mode, there are tintin, eggshell and freedom in the field of personal renting, but WeWork is the business of office building. In essence, it is the second landlord in the office building, who rents the office building from the owner for a long time, then carries out renovation and transformation, and then sublets it to individuals or small and micro enterprises by way of increasing the price and amortization.

how can we package the business model of such a second landlord?

WeWork has really worked hard.

1. According to the convention, it is a real estate leasing company.

At its root, Wework is a time-sharing lease. Wework first needs to sign in a low-priced house, and then rent it at a higher price to earn the difference. This leasing model determines that WeWork is a real estate leasing company with heavy assets.

if it is valued according to the real estate leasing company, what is the value of Wework?

Let's take a look at IWG Group, the originator of flexible office.

IWG has far surpassed Wework in terms of the number of cities covered, the number of offices, the total rental area and the number of members, but the current valuation of IWG is only 3.7 billion.

if Wework's business model is identified as a real estate leasing company, the valuation of Wework will be far less than $3.7 billion.

2.WeWork claims to be a technology company.

Wework is certainly not willing to accept such a low valuation. Even if they do, investors like Sun Zhengyi will not recognize it, so Wework tries to accumulate valuations.

the most direct way is to evaluate the technology stocks in the benchmark US stock market, such as Google, Facebook and other companies. Apart from their main business, as long as they are related to the concepts of technology and big data, they can double their valuations! For example, Amazon e-commerce platform, plus big data, can say that it can give personalized recommendations to customers through big data analysis, improve GMV, improve the company's income, and then pile up the valuation.

so Wework started thinking, ah, we are not a real estate leasing company, we are a technology company and a big data company!

But you can't call yourself a technology company just by having a PPT like Jia Accountant. How to package it?

Wework has a large number of owners and members, and these are all data. Let's put these data together and it will be big data in the future!

just start, and your own data is only raw materials, so who will cook? If you don't do it yourself, just buy it, and then you buy the architectural modeling company Case, the spatial analysis optimization company Teem and the spatial movement analysis company Euclid, and then you have launched services such as WeLive, RiseByWe, WeGrow, WeLabs and PoweredbyWe in a decent way to provide space utilization consulting services for enterprises, and packaged a new word: Space-as-a-Service.

In order to resolve the negative impact of the founder on the company, and even once reorganized, it also spent a high price of $5.9 million to buy the "We" trademark.

After the makeover, WeWork thinks that it is really a technology company and a big data company.

But deciding what business model a company is depends on whether this model can generate revenue for the company. At present, WeWork still lives on rent. What does the so-called big data bring to WeWork?

it turns out that when the company was operating, WeWork burned money for promotion, spent money from 2 yuan and recovered money from 1 yuan.

Now, the company claims to be its own big data. Those who introduced this service and that service still spent money from 2 yuan and recovered money from 1 yuan. Therefore, it seems that this and that tool guided by WeWork big data is useless. Even if the income of our family can be improved, do you want to introduce it to serve others?

aren't you awake?

3. Learn new words and stick to * * * to enjoy the economy

Later, with the rise of * * * to enjoy the economy such as Airbnb's * * * to enjoy the hotel and Uber's * * * to enjoy the travel, WeWork began to ponder that it is * * * to enjoy the office space, and we also enjoy the economy!

From then on, WeWork stood beside two big brothers who enjoyed the economy, and shouted out the number one of the three giants who enjoyed the economy in the United States. The whole thing was like the Three Musketeers, which was very bluffing.

however, on closer examination, WeWork has little to do with * * * enjoying the economy.

Airbnb and Uber are both platforms, with one end linking resources, the other end linking users, and the platform earning commissions in the middle, both of which are light asset platform models.

but WeWork is different. as we said earlier, it needs to lease assets at a high price first, then invest in decoration, and finally rent at a higher price. it is a standard asset-heavy leasing model, and its relationship with * * * enjoyment is too far-fetched.

WeWork failed to go public, and the butterfly fanned its wings!

The economy is going down, the tide is receding, * * * enjoying the economy is slowly stripped of its underwear, and many mothers who enjoy the economy, such as Uber, don't know. In this economic situation, Wall Street can't stand it, and this bubble blowing behavior of telling stories with eyes open and not blushing is not accompanied by Wall Street.

The upside-down valuation of the primary and secondary markets, such as WeWork, is increasingly impacting the existing VC market pricing model. The blind pursuit of high valuation in the financing of entrepreneurial companies will bring unpredictable follow-up financing risks. Now investors and analysts are no longer standing for such a story.

after the low tide, it is clear who is swimming naked.

after the failure of listing, WeWork burned a lot of money because of the high valuation in the early stage, and the accounts were empty. I thought that listing in the secondary market would reduce the financial pressure, but now that the listing failed, WeWork is facing greater financial pressure.

after the failure of listing, the signs of collapse became apparent.

First, CEO Adam Neumann, company vice chairman Michael Gross, co-head of real estate investment department Wendy Silverstein, co-founder and chief brand and influence officer Rebekah and other senior executives announced their resignation.

Then it was revealed that there will be a large number of layoffs this month. The initial planned number of layoffs is about 2,, accounting for about 16% of the total number of WeWork employees.

Finally, in order to cope with the financial pressure, WeWork is still considering selling its newly acquired big data business company. In order to save money, the summit originally planned for the second half of the year has also been cancelled.

but this is the second. WeWork's listing failure is more like a butterfly flapping its wings.

As the originator of the so-called * * * office space, there are many disciples and grandchildren under WeWork, such as SOHO, Krypton Space and Youke Workshop in China, which will be greatly affected, and some of them may even be fatal.

Last year, Pan Shiyi confidently announced that she would split up her office section SOHO3Q and go public independently. This year, the economy of SOHO 3Q was cold, and WeWork failed to go public. Pan Shiyi never mentioned this matter again in public.

Krypton Space, which is surrounded by rumors such as "taking the project from the developer at a price 3% higher than the market price" and "some properties can't pay the rent on time", has started to lay off employees at the beginning of New Year's Day this year, not only canceling the year-end bonus and annual meeting, but also the founders no longer compete for the so-called "* * * to enjoy the first share of the office".

In the three years since the establishment of Youke Workshop founded by Mao Daqing, the voice of doubt has never stopped. In the face of difficulties, Mao Daqing also admitted that in 219, the breakthrough of joint office has begun, and the breakthrough of Youke Workshop is bound to continue to come.

With the economic downturn and the cold capital, how long can the so-called * * * office space bubble blown up by capital last? This is a big proposition, which needs time.

However, Uber's share price plummeted and WeWork lost its IPO. How long can the story of * * * enjoying the economy touted by Sun Zhengyi's vision fund of 1 billion yuan continue to blow?

can this story go on?

I'm not going to listen to the story that the smart people on Wall Street in the United States can't listen to, even if Son can continue to tell it with a different concept. Are we idiots?

Originally, I had two hearts, one kind and the other disgusting. After watching the listing process of WeWork, I only had one kind heart left, because I was disgusting ...