Venture capital giant Andreessen Horowitz announced Monday that it will invest in Adam Neumann’s residential real estate firm Flow, the WeWork Inc co-founder who has often been criticized for his volatile management style.
The investment was announced in a blog post by Marc Andreessen, co-founder and general partner of the venture capital firm. The blog does not disclose financial details of the investment.
“Adam is a visionary leader who has revolutionized commercial real estate, the second largest asset class in the world,” wrote Andreessen.
In 2019, Neumann stepped down as WeWork’s chief executive officer and agreed to relinquish majority voting rights in the company. That’s because his Japanese conglomerate SoftBank Group Corp and other shareholders opposed him over the company’s estimated valuation plummeting ahead of its planned initial public offering.
WeWork went public last year following a merger with a special-purpose acquisition company that was ultimately valued at $9 billion, down from $47 billion in 2019.
Andreessen Horowitz and Flo did not immediately respond to Reuters’ request for additional comment.
Flow’s website doesn’t provide much details about the business, other than that it’s set to launch in 2023.
According to a January Wall Street Journal report, Neumann has acquired majority stakes in more than 4,000 apartments, valued at a total of $1 billion.