Adam Neumann an Israeli – American billionaire, who allegedly claimed to become the first trillionaire, is an investor and a businessman, who co-founded WeWork alongside his co-worker Miguel McKelvey. He was the CEO of WeWork till he was forced out of the company.
|Born||April 25, 1979|
|Title||Co-founder of WeWork|
|Spouse||Rebekah Paltrow |
Early life of Adam Neumann
He was born on April 25th, 1979 at Beersheba in Israel to Jewish parents. His parents were Avivit and Doron Neumann, who were graduates of Ben-Gurion University Medical School. He also has a younger sister named Adi. He and his were children of divorce and lived with their mother. Adam was only seven at the time. It is said that he lived in 13 different homes by the time he was 22. During his teens, he lived on a kibbutz, a collective community settlement across the country, In southern Israel, while his mother worked at a nearby hospital as a doctor.
Education of his early days is mostly unknown but he is said to have studied near the Gaza Strip. He was highly dyslexic and couldn’t read or write till he was in the third standard. He then served in the army for five years, even though only three years of service was required. At the age of 22, He went ahead and attended the Zicklin School of Business at Baruch College, New York City.
His career before WeWork
It is said that during his time at the University, he entered an entrepreneurship competition, where he submitted his concept of community living. However, it was rejected in the first round itself.
But he was intent on setting up his business so therefore alongside, his studies he started a women’s footwear business, which failed. He moved on to his next business which made baby clothes named “Egg Baby” and “Krawlers” but it also turned out to be a failure and the company went into loss. Egg Baby is still around today (as of 2023) as a luxury baby clothing company headed up by clothes designer Suzan Lazar. Though, Adam Neumann is no longer involved in the day-to-day operations of Egg Baby.
To concentrate on his business, he dropped out of college with only four credits left and started working from a small office in a warehouse in Dumbo in Brooklyn. Where he struggled to pay expenses and salaries to his employees. There was when he noticed that many cubicles in the office were empty and had a new idea.
This is how the idea of WeWork was born.
friend Miguel McKelvey, who later was his co-founder in WeWork. Not very late, GreenDesk was leasing out more than 100 office spaces, charging anything between $350 and $2,400 per month. However, in 2009, they sold their share to their landlord. With WeWork in process. Adam’s wife, Rebekah Paltrow Neumann, also joined the duo and became the third co-founder.
His career during WeWork
They began by renting their first location in SoHo, Manhattan, which came into works in 2011. A Manhattan real estate developer Joel Schreiber purchased 33% interest in the company for $15 million. By July 2011, they came up with two more locations: one the opposite Empire State Building and the other in the Meatpacking. One of the locations was rented by PepsiCo. Who also acted as an advisor to WeWork.
In 2012, he partnered with Joel Schreiber and Ken Horn(from Alchemy Properties) to purchase the top floors of the Woolworth Building for $68 million. Adam also purchased other buildings, subsequently leasing the spaces to WeWork.
By 2013, they had partnered with 350 start-ups including Fitocracy and HackHands
In 2014, WeWork was considered “the fastest-growing lessee of new office space in New York” that spread to every continent including places like the USA, the UK, Israel, and France. By early 2015, their valuation had skyrocketed to $15 million. They were also named to Fastest Company’s “50 Most Innovative Companies list.”
On 2015, June 1, 2015, Artie Minson, the former chief financial officer of Time Warner Cable, joined the company as the president and the chief operating officer. They also acquired CASE, a real estate and construction technology company, as their first acquisition
By 2018, the company had spread all around the world having 253 locations in 22 countries and managing more than 1.3 million square meters of office space. The company started being valued at $47 billion.
The company reached its breakdown point in 2019, when SoftBank, a Japanese investment company, lost confidence in Adam’s leadership and called a meeting with the board of directors to oust him from the company. This happened because the company filed Form S-1. The filing showed significant losses, expensive lease agreements, and a complex relationship with Adam Neumann. It was also revealed that he had liquidated $700 million of his funds.
Adam Neumann stepped down as the CEO of WeWork on 24th September 2019.
His career after WeWork
Nearly after three years after stepping down as the CEO of WeWork. Neumann is ready to step into the real estate industry, again. His new venture ‘Flow’ is valued at $1 billion even before its launch.
He claimed that “Flow” would revolutionize the real estate agency.
He received his first funding from Anderson Horowitz, of a thick cheque of $350 million.
There is not much known about the brand as it is yet to be launched in 2023.
His pop culture
Adam Neumann is a main focus of the nonfiction book Billion Dollar Loser (2020). In the television series WeCrashed (2022), where Adam is portrayed by Jared Leto. Which portrayed his life at WeWork to the downfall of the company at the hands of Adam Neumann
His Net worth
As of 2023, his net worth is estimated to be $2.2 billion
His personal life
While in college, He met his now-wife, Rebekah Paltrow Neumann, a former actress, who is the cousin of actress Gwyneth Paltrow. The couple got married in 2009, and now have 6 children together
Unknown facts about Adam Neumann
1) WeWork was his fifth venture and his first three ventures were a fail.
2) the crew found a sizable chunk of marijuana stuffed in a cereal box from the plane Adam Neumann and his friends had taken to a vacation to Israel and therefore sued by the private airline company
3) He threw a huge party at the office after laying off 7% of his employees due to cost cut. This tainted his reputation even further and made netizens question his leadership skills.
4) Neumann completed his graduation in 2017, after having left college to focus on his business in way back in 2009.
Famous quotes by Adam Neumann
Success is not just about making money. Success is happiness. Success is fulfilment; it’s the ability to give.Adam Neumann
As the world becomes a more digital place, we cannot forget about the human connection.Adam Neumann
Globalization for a start-up is exciting; you have to learn so fast about the different cultures of the world.Adam Neumann
a child who lived in a lot of places, one of the hardest things for me was to join a new community. It was hardest at the kibbutz, but that was also one of the most impressive communities.Adam Neumann
If more people follow their superpowers – and everyone has one – then we’re going to be betterAdam Neumann
as a society.
Adam Neumann’s life is a remarkable account of a young man, who took ideas, which sounded stupid and converted them into a multi-billion-dollar business. Even his failures in his other ventures he did not give up and persisted, which eventually paid off. Even though his business life had been filled with controversies and hatred, he did not back down.