It's been floated they can get margins instantly by pulling back on variable cost ameneties like beer, kombucha, operations staff, etc.
That said, having been one of their tennants in SF, the price still feels high.
The facilities are really nice, but it's A LOT of cash flow for most startups.
The clinentell that seem OK with the price tend to be large corporations conducing top-of-cycle innovation theater with small offices doing "INNOVATION"
And service agencies; PR, Marketing, etc.
There are relatively few low capital, expoential growth companies I have found.
Very few people griding out code past say 6pm most days.
Most folks are living a lifestyle outside of WeWork's walls. The Transbay facility at 535 Mission is completely empty Saturday and Sunday.
It's a lot of innovation & tec tourists. Folks here for top of cycle vibes, but without the cred of having built something that will last.
People who want to build lasting companies GTF away from WeWork.
I think it's saying that Nori Gerardo Lietz's analysis paper was unpublished.
The conversion price of the convertible debt is the only that the wasn't disclosed in teh S-1. It says it did convert to a G-1 prefered stock, but it's unclear what the value of those shares are.
In July 2018, we entered into an agreement for the issuance of a convertible note with SoftBank Group Corp. for a commitment in an aggregate amount of $1.0 billion (as amended in January 2019, the “2018 convertible note”). On August 31, 2018, we drew down on the full $1.0 billion commitment. On July 15, 2019, the 2018 convertible note was converted into 9,090,909 shares of Series G-1 preferred stock."
We will have to leave the glass walls and wood floors, but the other stuff should be movable and liquidated to help We's balance sheet.
"FF&E are movable furniture, fixtures, or other equipment that have no permanent connection to the structure of a building or utilities. These items depreciate substantially but definitely are important costs to consider when valuing a company, especially in liquidation."
That said, having been one of their tennants in SF, the price still feels high.
The facilities are really nice, but it's A LOT of cash flow for most startups.
The clinentell that seem OK with the price tend to be large corporations conducing top-of-cycle innovation theater with small offices doing "INNOVATION"
And service agencies; PR, Marketing, etc.
There are relatively few low capital, expoential growth companies I have found.
Very few people griding out code past say 6pm most days.
Most folks are living a lifestyle outside of WeWork's walls. The Transbay facility at 535 Mission is completely empty Saturday and Sunday.
It's a lot of innovation & tec tourists. Folks here for top of cycle vibes, but without the cred of having built something that will last.
People who want to build lasting companies GTF away from WeWork.