With his flowing locks and gnomic pronouncement that the “energy of we [is] greater than any one of us, but inside each of us”, Adam Neumann has the air of a prophet. But the co-founder of WeWork, the shared office group, has not converted stock market investors.
WeWork’s decision on Monday to shelve its planned initial public offering, even at a heavily reduced valuation, is a severe setback for the company, as well as its backers SoftBank and Softbank’s Vision Fund, and visionaries everywhere. Mr Neumann’s authority was tested and has failed.
It is a touchy moment for founders such as Mr Neumann, who convince venture capitalists that technology and a new business model can change the world. Travis Kalanick, Uber’s co-founder, was ousted as chief executive well before its IPO in May and Uber and Lyft have struggled in public markets.