We have seen how startups have failed even though they show a lot of promise in the initial stages. There is also a reason why they have failed in the first place, and that reason applies to one of the most promising startups in Silicon Valley, which is WeWork. For those who don’t know, WeWork was said to be the biggest IPO in the market last year. However, that public IPO never came out because of the internal problems inside the startup, and that forced the things that came after.
For example, the WeWork CEO was ousted as a reason for this failed IPO, who was also the founder of this startup. On the other hand, WeWork was at a stage where it would either file for bankruptcy or go bust because no one was there to bail them out. Then came SoftBank, which is Japan’s most significant investment firm led by Masayoshi Son. SoftBank took a majority stake in WeWork at a crucial moment with hopes of reviving the startup and overhauling everything inside the company.
SoftBank’s investment WeWork
At that time, most of the experts were puzzled as to why SoftBank invested in WeWork, which showed no promise at all. But then, since SoftBank was the investor, we knew that WeWork might get back to profitability again, but then came Coronavirus, and then things got worse.
Now, SoftBank and Masayoshi Son have finally admitted their mistake in buying a majority stake inside WeWork, and Son has even called himself “foolish” for putting his company’s money inside WeWork. Also, SoftBank now values WeWork only at $2.9 billion, whereas the company has already invested $18.5 billion in the company. At one point, WeWork was valued at $47 billion, and that was the time when WeWork was preparing to go public with its IPO. Son said “We made a failure on investing in WeWork and I’ve been admitting that several times I was foolish,”