So How Much Is WeWork Really Worth?

Commercial real estate startup WeWork has attracted some attention recently after being Softbank’s latest multi-billion dollar deal, raising $4.4 billion at an estimated $20 billion valuation. WeWork is by far the largest shared workspace startup, but is a $20 billion price tag justified? Such valuation makes WeWork the 3rd highest valued American startup after Uber and Airbnb, but also raises some questions in light of the criticism over Softbank’s policy of investment resulting in extremely high valuations for its newby portfolio companies.

In order to answer this question, we used Zirra’s company analysis automation technology that helps get the fuller picture about every company in question. First, we asked Emmet, a company analysis bot on Zirra’s homepage, to analyze WeWork’s risk and success criteria:

Source: Zirra.com

**Try Emmet the company analysis bot here**

Emmet is a first of its kind AI-powered analysis bot that understands simple English and answers high-level company analysis insights within seconds. Emmet uses Zirra’s company analysis technology, aggregating data from a myriad of public and private information sources. It then utilizes Natural Language Processing (NLP) techniques to process large volumes of unstructured text, to detect companies and their semantic context, model their interrelationships, and derive dynamic indicators.

Emmet’s output gave us a few interesting points to think about when analyzing WeWork. Emmet confirmed some of the indicators we already sensed about WeWork: the company is well-funded, it has raised much more than its average competitor, and it has created many partnerships, including its most recent partnership with Airbnb, in which business travelers will be offered spots at WeWork locations.

However, Emmet also shows that it’s not all rosy in WeWork’s kingdom, despite the massive PR the company attracts. The company had to cut 7% of its staff last year, it suffers from a certain level of competition, it lacks IP (while holding many trademarks), and it suffers from some legal issues.

Let’s tackle the legal concerns. After learning about their existence from Emmet, let’s go to Zirra’s automatic company report about WeWork, accessible to anyone from Zirra’s homepage. In the section ‘latest events’ we will look for recent legal problems and then click on one of the articles offered.

Source: Zirra.com

One of the articles describes WeWork’s recent legal battle against UrWork, a Chinese competitor, over a trademark infringement. According to WeWork, UrWork copied a part of its name and its logo. The lawsuit is also in context with other problems Emmet has raised such as the growing competition and the lack of IP: on the one hand, WeWork cannot register a patent over shared working space, on the other, it competes over global domination, just as Uber in the automotive space, especially in Asia-Pacific, where UrWork is a strong player.

While UrWork expanded into Singapore and invested in an Indonesia-based rival, WeWork bought Singapore-based SpaceMob. UrWork, which is funded by Sequoia and Jack Ma, also announced it plans to expand into the US and UK. In fact, a part of the financial round led by Softbank was dedicated to WeWork’s expansion in Asia.

According to analytics service SimilarWeb, WeWork’s traffic mainly originates in the US, followed by the UK, Brazil, Canada, and Japan. The recent Softbank round was a part of WeWork’s effort to penetrate into Asia-Pacific.

Source: SimilarWeb

**Try Emmet the company analysis bot here**

Emmet also raised an HR issue. Checking WeWork’s LinkedIn employee and job opening count reveals an interesting angle. September 2017 was the first month in which WeWork significantly reduced its growth to almost none. Also, according to the company’s job openings chart, WeWork is now reducing its operations efforts in favor of marketing and engineering.

Source: LinkedIn

So how much is WeWork really worth? Despite raising a few risk criteria, Zirra’s company analysis algorithms forecasts a bright future for the shared workspace company known for their free beer kegs.

Zirra values WeWork even higher than the valuation given by Softbank last August. WeWork’s worth is estimated at about $25-$26 billion. In the case that the company chooses an exit strategy, most likely to go to an IPO, it can ask for almost $39 billion in valuation. According to Zirra, WeWork can go public within 2-3 years, at a probability of 60%-70%.  

Source: Zirra.com

 

CryptoRated and PEB are Partnering to Curate and Review ICOs for Blockchain Investors

CryptoRated, a review, rating and analysis platform for Blockchain investors, has partnered with PrivatEquity.biz, a peer-to-peer platform that directly connects shareholders in private tech companies with accredited investors. With the new partnership, PrivatEquity.biz will curate selected ICOs to allow investors to diversify their portfolio with some of the chosen ICO tokens, providing them with an arena for smooth and transparent transactions.

CryptoRated,a Zirra brand, offers a platform that reviews ICOs using a community-sourced and transparent rating process.

ICOs are rapidly becoming a fundraising vehicle of choice, offering much greater efficiency and flexibility compared to traditional fundraising paths. Since the beginning of 2017, new ICOs have raised more than $2.2 billion for approximately 150 startups. The market experienced a 230% year-over-year increase.

Ethereum has created a flourishing community of tech companies now using cryptocurrency for a variety of enterprise, finance, and consumer solutions, attracting wealth from top-notch Silicon Valley investors, such as Lightspeed, Andreessen-Horowitz and Union Square, and some of the biggest tech corporations, such as Microsoft, Intel, and Amazon. More generally, Bitcoin and established Altcoins have produced significant yields for investors.

PrivatEquity will feature only future ICOs so that accredited investors will get an exclusive list of opportunities. At any given moment exciting new ICOs are about to be issued, as more and more startups are choosing the path of ICO as their main fundraising vehicle. Raising funds through an ICO allows them to not only sell equity in their company in a simple, decentralized way directly to investors but also grow their offering, encouraging token owners to carry out transactions using the token. Investors enjoy a liquid equity in the form of a tradable cryptocurrency, and access to startups that were once accessible only to professional venture capital investors.

The cryptocurrency space is exciting and is growing fast, but it introduces many new risks. It is subject to extreme volatility, and is still largely unregulated, making the market extremely challenging, especially for less educated investors.

CryptoRated, a Zirra brand, offers a complete set of tools for blockchain investors, cryptocurrency entrepreneurs, and service providers. CryptoRated is the first and only platform today that reviews Initial Coin Offerings (ICOs) using a transparent and community-sourced rating process. The platform includes ICO and token reviews on the most innovative and noteworthy ICOs; a DIY ICO scorecard that brings community wisdom into ICO reviews; an Ongoing and future ICO calendar; and an ICOpedia to explain and offer ideas about the overall crypto market.

One of the most anticipated ICOs today is Utrust, a payment platform that allows buyers to pay with cryptocurrencies and sellers to receive payment in flat currency while acting as a trusted mediator. Utrust launched a pre-ICO of $1.5 million last August, followed by a 7-round ICO that began in September, with the goal of obtaining a funding total of $50 million. The Utrust token will act as an investment stake, as well as a transactional token for buying products and services on the platform.

Another successful ICO is UnikoinGold, backed by investors such as Mark Cuban a token designed for legal and licensed betting on E-sports matches and tournaments, as well as rewards and incentives for e-sports participants. Sirin Labs, a Smartphone vendor, has announced plans to launch a new Smartphone designed exclusively as a secured cryptographic hardware wallet. Sirin will also issue tokens in order to encourage developers to launch apps and to create an ecosystem around the Smartphone.

Accredited investors are expected to gain access into U.S and international ICOs as the SEC plans to regulate the ICO market, similar to how it approved access to crowdfunding platforms. For these investors, PrivateEquity.biz will feature a list of some of the most anticipated ICOs in the market today.

About 2,000 accredited investors are currently listed on the PrivatEquity.biz platform, which was recognized by Red Herring as one of the top 100 innovative companies in Europe in 2016.