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Whitney MPA

Founder & Director at Hello, My Name is KING, Inc.

Yesterday there was a really interesting article published on the WSJ talking about how WeWork has been able to push its valuation over $20B by staying away from labeling their business as a real estate play towards investors.

From reading the article it appears that WeWork is not being valued by its investors as an office rental company. It's made the case that it is a business services marketplace, selling vendors' insurance and HR and legal and servers to as large as swath of the small business sector as it can grab with its fancy offices. It wants to own the app store for enterprise services.

For those of you not familiar with WeWork, they are a company that provides a coworking space for startups and larger companies where there is only a lease that renews on a monthly basis which gives a ton of flexibility if you need to scale up or scale down your operation quickly.

What are your thoughts on this? How could this impact valuations for other startups if it is proven that WeWork is not much more than a real estate play?

Look forward to a healthy discussion.