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Its astonishing that Adam Newumann was able to raise hundreds of millions for Flow after all he did at WeWork. At this point you wonder, if VCs are also complac
by Vipsy 3y ago
Its astonishing that Adam Newumann was able to raise hundreds of millions for Flow after all he did at WeWork. At this point you wonder, if VCs are also complacent in these scams. Are they together in scamming the LPs?
- lolbase 3y agoa16z viewed Neumann very positively, to the point that they asked potential CEOs what they thought of Neumann, and the "correct" answer was to be empathetic that he took a huge swing of the bat.
- Cookingboy 3y agoIf that's true, then it's kinda gross tbh. What's their advice to Neumann this time? "I hope you are more discreet this time so your scam lasts long enough for us to exit"???
- lolbase 3y agoThis article elaborates on it: https://www.businessinsider.com/interview-venture-capital-job-andreessen-horowitz-avoid-overconfidence-respect-entrepreneur https://www.businessinsider.com/interview-venture-capital-jo... > A candidate who displayed empathy for the entrepreneur would answer the question about Neumann with something like the following, Horowitz said: "He did an unbelievable thing in that he built something that almost nobody has done, which is he built a consumer brand in commercial real estate." The person might add, "He told that story so beautifully that he was able to raise a gigantic amount of money and fund this incredible growing operation."
- shalmanese 3y agoI mean, Ben Horowitz is correct here. In a VC interview context, crapping on Adam Neumann is boring and zero information value which is a negative signal. Being able to fairly evaluate people you have strong emotions for, positive or negative is a key VC trait.
- pclmulqdq 3y agoI somehow think that Horowitz wouldn't want to hear my honest evaluation of Adam Neumann: He found a set of idiots with money (chiefly Andreesen Horowitz and Softbank) and saw them making dumb trades, so he found a way to put himself on the other side of those trades. To do this, he constructed an "audacious" but ultimately fundamentally dumb business that he could wrap in VC shibboleths, whose principal goal was to collect VC money and funnel it into his pocket. In a way, he is a brilliant exploiter of people like Horowitz.
- shalmanese 3y agoI mean, if he fails his own test, that’s his problem but the test is the correct one.
- socketcluster 3y agoAgreed. Anyone can create a company which raises a ton of money and feeds 90% of it back to itself as revenue.
- pclmulqdq 3y agoI don't think that anyone can do this, at all. I think there's a totally different skillset that it takes to actually run a business than to get money from VCs, and by stripping away the need for the running-a-business skillset, Adam Neumann really perfected his VC grift game. That doesn't mean that he wasn't exceptionally skilled at it.
- namdnay 3y agoI’m not sure the evaluation above is “fair”. “Positive” would be a better term People never like to be told they’re mugs
- meheleventyone 3y agoI suspect it’s more self-serving and they just want to weed out people that would have moral qualms about making gobs of money with a white elephant.
- EdwardDiego 3y agoGiven a16z's presence in crypto, I reckon so. Although to be fair, they seemed to be interested in scamming true crypto believers in that space, more than their partners, they'd get a bunch of shitcoins in the ICO and then offload them asap.
- vernon99 3y agoNot LPs, but later stage VCs and private equity. It’s a game of musical chairs, you just need to be early in. And A16Z are experts in this, with all their investments in crypto. Def not great for their rep and I’d never raise from them because of this btw.
- sangnoir 3y ago> Its astonishing that Adam Newumann was able to raise hundreds of millions for Flow after all he did at WeWork I'm not astonished: WeWork made VCs lots of money - not counting SoftBank as they were the unsophisticated marks/bag holders.
- TheOtherHobbes 3y agoI'm fairly sure Vision Fund is just a money laundering operation. It takes talent to have such an unbroken record of investment failure.
- brohee 3y agoMore than complacent, complicit.