5 ms·

Isn't this why all the companies are IPO'ing currently? Lyft and Uber hit the 10-year investment marker and were essentially forced to exit, but all the others

by ProAm 7y ago

Isn't this why all the companies are IPO'ing currently? Lyft and Uber hit the 10-year investment marker and were essentially forced to exit, but all the others I feel just see the writing on the wall and know they can't outlast a multi-year recession.

xwdv 7y ago
Can’t say much about others but WeWork has been the product of a frothy bull market for a long time where anybody with a half decent startup could pick up generous venture capital. But when that market tightens up, and we see less new startups coming out and with less money than before, those startups will take a hard sobering look at their finances and decide they simply can’t afford to blow money on shitty overpriced hipster co-working spaces, which unfortunately for WeWork is the only product they offer. WeWork will run into cashflow problems and that will be the end of it.
- i_cant_speel 7y ago
  What would be the alternative for small companies who want to have some kind of space to co-locate? If they feel like they can't afford something like We Work, they probably aren't willing to commit to a dedicated office space. Also, it isn't just tiny startups that are using We Work. The article stated that 40% of their revenue comes from large enterprises. The money will be much slower to dry up for the large, established companies.
  - vichu 7y ago
    You do realize WeWork doesn't have a monopoly on shared office spaces? In fact, they aren't even the biggest player in the space - Regus is.
    - i_cant_speel 7y ago
      Yes I'm aware they aren't the only ones. The person I responded to is implying that total demand for coworking spaces would fall, and I was asking what the alternative would be.
      - secabeen 7y ago
        Some possibilites: -- Home offices for employees that can have one. -- Move remote employees into corporate HQ or other existing offices, lay-off employees who refuse.
    - intuitionist 7y ago
      TFA implied that WeWork has more desks than IWG since the end of last year.
  - Gene_Parmesan 7y ago
    > What would be the alternative for small companies who want to have some kind of space to co-locate? In a recession? Probably remote work. A small startup that's running into cashflow problems, and who has no dedicated office space -- coworking spaces seem like the first overhead expenditures to get cut.
  - ithinkinstereo 7y ago
    During a recession: Individual contractors and small teams (<10) will likely go back to working from home or out of cafes. Larger, enterprise teams will have more, and better, options and may cut expenses by downgrading to cheaper accommodations either via less "hip" direct competitors (Regus) or taking on cheap/discounted leases directly.
deleted 7y ago
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by ProAm 7y ago

xwdv 7y ago

Can’t say much about others but WeWork has been the product of a frothy bull market for a long time where anybody with a half decent startup could pick up generous venture capital. But when that market tightens up, and we see less new startups coming out and with less money than before, those startups will take a hard sobering look at their finances and decide they simply can’t afford to blow money on shitty overpriced hipster co-working spaces, which unfortunately for WeWork is the only product they offer. WeWork will run into cashflow problems and that will be the end of it.

i_cant_speel 7y ago
What would be the alternative for small companies who want to have some kind of space to co-locate? If they feel like they can't afford something like We Work, they probably aren't willing to commit to a dedicated office space. Also, it isn't just tiny startups that are using We Work. The article stated that 40% of their revenue comes from large enterprises. The money will be much slower to dry up for the large, established companies.
- vichu 7y ago
  You do realize WeWork doesn't have a monopoly on shared office spaces? In fact, they aren't even the biggest player in the space - Regus is.
  - i_cant_speel 7y ago
    Yes I'm aware they aren't the only ones. The person I responded to is implying that total demand for coworking spaces would fall, and I was asking what the alternative would be.
    - secabeen 7y ago
      Some possibilites: -- Home offices for employees that can have one. -- Move remote employees into corporate HQ or other existing offices, lay-off employees who refuse.
  - intuitionist 7y ago
    TFA implied that WeWork has more desks than IWG since the end of last year.
- Gene_Parmesan 7y ago
  > What would be the alternative for small companies who want to have some kind of space to co-locate? In a recession? Probably remote work. A small startup that's running into cashflow problems, and who has no dedicated office space -- coworking spaces seem like the first overhead expenditures to get cut.
- ithinkinstereo 7y ago
  During a recession: Individual contractors and small teams (<10) will likely go back to working from home or out of cafes. Larger, enterprise teams will have more, and better, options and may cut expenses by downgrading to cheaper accommodations either via less "hip" direct competitors (Regus) or taking on cheap/discounted leases directly.

deleted 7y ago

[deleted]