As a part of making its largest funding ever in WeWork founder’s new actual property empire, Andreessen Horowitz obtained a share in hundreds of condominium items, studies say.
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Renters, meet your new landlord: A Silicon Valley enterprise capital agency.
Andreessen Horowitz, to be particular.
After the agency — often known as a16z — wrote its biggest-ever verify to assist get a brand new condominium startup off the bottom, the agency obtained a share in hundreds of items throughout the nation, The Wall Street Journal reported on Tuesday.
A16Z wrote a $350 million verify to Stream, a mysterious housing firm based by Adam Neumann, who’s greatest recognized for his standing as a co-founder and former chief govt officer of the coworking behemoth WeWork.
In trade, Neumann handed over a part of his actual property holdings, which reportedly whole greater than 4,000, WSJ reported, citing individuals accustomed to the matter.
“By investing in Stream, Andreessen Horowitz additionally acquired stakes within the buildings,” WSJ reported. “For a venture-capital agency to obtain in impact a stake in hundreds of flats in return for an funding could be very uncommon, partially as a result of there are so few venture-funded companies that personal actual property.”
A16Z has invested in different ventures that usually need to do with making use of expertise to the true property transaction course of. It’s well-known for its standing as an early investor in Fb and Airbnb.
That is the primary time it has obtained shares in housing inventory itself as a part of an funding.
Neumann is understood for his standing as a charismatic CEO of WeWork throughout its meteoric rise and eventual fall earlier than the corporate went public. Neumann walked away with about $1 billion when he left in 2019.
He remained within the shadows earlier than information emerged earlier this 12 months that he had amassed condominium buildings throughout the nation.
Particulars on Neumann’s actual plans for Stream aren’t but clear.
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