Adam and Miguel’s Excellent Adventure: The Birth of a Workspace Empire

Adam Neumann

Adam Neumann and Miguel McKelvey co-founded WeWork in 2010. Adam Neumann was born on April 25, 1979, in Tel Aviv, Israel. He spent part of his childhood in Kibbutz Nir Am, a communal settlement in southern Israel. After completing his service in the Israeli Navy, Neumann moved to New York City in 2001.He enrolled at Baruch College’s Zicklin School of Business but left before graduating to pursue entrepreneurial ventures. Prior to WeWork, Neumann founded Krawlers, a company specializing in baby clothing with padded knees, aiming to cater to the needs of crawling infants. (Adam Neumann)

Miguel McKelvey

Miguel McKelvey was born in 1974 and grew up in Eugene, Oregon, in a communal living environment known as a “five-mother collective.” He attended the University of Oregon, earning a Bachelor of Architecture degree in 1999. After graduation, McKelvey co-founded English, baby!, a web portal and social network designed to help students learn English through online courses and social interaction. He later moved to New York City, where he worked at Jordan Parnass Digital Architecture, managing international retail projects for American Apparel. After leaving WeWork in 2020, McKelvey continued his entrepreneurial journey. He co-founded The Proto Collective and NAYAH. Currently, McKelvey serves as an advisor at Known Holdings. (Miguel McKelvey)

The Founding Story

Neumann and McKelvey met in New York City, where they both worked in the same office building. In 2008, they collaborated to create GreenDesk, an eco-friendly coworking space in Brooklyn that emphasized recycled materials and sustainable practices. After selling GreenDesk, they founded WeWork in 2010, opening their first location in Manhattan’s SoHo neighborhood. WeWork aimed to provide flexible, community-focused workspaces for freelancers, startups, and established companies, fostering collaboration and innovation. (Wikipedia)

Sharing is Earning: The Rise and Shine of the Coworking Industry

The co-working space market has experienced significant growth in recent years, driven by the increasing demand for flexible and collaborative work environments. In 2023, the global co-working spaces market was valued at approximately USD 14.91 billion. Projections indicate that this market will grow at a compound annual growth rate (CAGR) of 15.7% from 2024 to 2030, reaching an estimated USD 40.47 billion by 2030. (Grand View Research)

In India, the co-working sector has mirrored this global trend. The Indian co-working space market was valued at USD 1.76 billion in 2023 and is projected to reach USD 4.58 billion by 2032, exhibiting a CAGR of 12.7% during the forecast period. (Organic Market Research)

This growth is fueled by the rise of startups, freelancers, and small to medium-sized enterprises seeking cost-effective and flexible office solutions. Several factors contribute to the expansion of the co-working market. The shift towards remote and hybrid work models has increased the demand for flexible workspaces. Additionally, the gig economy’s growth has led to a surge in freelancers and independent contractors who prefer co-working spaces for their networking opportunities and professional amenities.

Technological advancements have also played a pivotal role in this market’s evolution. Co-working spaces are increasingly integrating smart technologies and Internet of Things (IoT) devices to enhance user experience and operational efficiency. These innovations include resource management software, visitor management systems, and smart infrastructure solutions.

Despite the positive outlook, the co-working industry faces challenges such as market saturation in urban areas and the need to adapt to changing work patterns post-pandemic. However, the overall trajectory remains upward, with co-working spaces poised to play a central role in the future of work.

Office Space, Reimagined: What Makes WeWork Tick

Mission and Vision

WeWork’s mission is to “empower tomorrow’s world at work.” The company envisions building a global community where people and companies come together to do their best work.

Problems They Solve

Traditional office spaces often come with long-term leases, high costs, and limited flexibility, which can be challenging for startups, freelancers, and even established companies seeking adaptable work environments. WeWork addresses these issues by offering flexible membership options, allowing businesses to scale their workspace up or down as needed. Additionally, WeWork fosters a sense of community among its members, promoting collaboration and networking opportunities that can lead to new business ventures and partnerships.

Business Model

WeWork operates on a “space-as-a-service” model. The company leases large commercial properties, renovates and furnishes them, and then offers these spaces to clients on flexible terms. Membership options range from hot desks and dedicated desks to private offices and custom full-floor offices, catering to various business sizes and needs.  Beyond workspace solutions, WeWork generates revenue through additional services such as conference room bookings, IT support, and partnerships with local businesses. This diversified approach allows WeWork to meet the evolving demands of the modern workforce while maintaining a sustainable business model.

From Hot Desks to Cool Spaces: A Peek Inside WeWork’s Toolbox

WeWork offers a diverse array of workspace and management solutions tailored for individuals, startups, and enterprises.

Virtual Office Solutions

WeWork’s Virtual Office service allows businesses to obtain a premium address without the cost of physical office space. Key plans include:

• Business Registration Plan: Provides a government-compliant address for company registration and GST purposes, along with mail and package handling services.
• GST Registration Plan: Enables businesses to use the address for GST registration.
• Features:
  • Choose from 35+ locations in 7 cities.
  • Quick setup: Registration completed in under 15 minutes.
  • Partnership with myHQ offering additional benefits like free conference room hours and ₹10 lakhs worth of community perks​.

WeWork Workplace

A unified SaaS platform designed for workspace management and hybrid strategies. Key features include:

• Workspace Bookings: Manage and book desks, meeting rooms, and entire spaces across WeWork and owned properties.
• Data-Driven Insights: Provides analytics on space utilization and helps reduce operational costs.
• Hybrid Team Management: Supports overflow and multi-day bookings to align with headcount dynamics​.

WeWork Labs & Growth Campus

Focused on supporting startups and entrepreneurs, this platform provides:

• Subsidized Workspaces: Access to global locations through All Access Plus memberships.
• Pre-Seed Investments: Up to $200,000 in funding for early-stage startups in sectors like healthcare, fintech, and SaaS.
• Community and Mentorship: Networking opportunities with industry leaders, curated events, and access to the WeWork Labs Digital Community​.

Office Space and Workspace Solutions

WeWork offers flexible and ready-to-use spaces, including:

• Private Offices:
  • Fully customizable and scalable for teams ranging from 1 to 2000+.
  • Amenities include 24/7 access, meeting rooms, and office supplies.
• Day Passes:
  • Allows on-demand access to coworking spaces.
  • Available across 40+ locations with amenities like high-speed Wi-Fi and unlimited coffee​.

All Access Memberships

WeWork provides two key membership plans to accommodate flexible work requirements:

• All Access Pay Per Use:
  • Monthly postpaid billing.
  • ₹1000 per credit for desk bookings, with a one-time setup fee of ₹1500.
  • Features include shared amenities and admin dashboards for real-time space usage tracking​(WeWork All Access Pay P…).
• All Access Plus:
  • A monthly subscription offering unlimited access to 450+ global locations.
  • Includes five conference room credits and access to wellness rooms.

Enterprise Office Solutions

Designed for large-scale businesses and Global Capability Centers (GCCs), these include:

• Customized Managed Offices: End-to-end solutions with IT infrastructure, private Wi-Fi, and real-time analytics.
• Hub-and-Spoke Model: Optimized for hybrid working strategies with flexibility to scale.
• Innovation Services: Through WeWork Labs, enterprises can access innovation management tailored to long-term business goals.

WeWork Business Solutions

A comprehensive platform that supports businesses with operational and administrative services:

• Key Features:
  • Technology Services: Includes hardware rentals and purchases with flexible tenures and zero deposits.
  • Financial Services: Affordable business insurance options.
  • Human Resource Services: Assistance with employee health insurance and tech recruitment.
  • Corporate Gifting: Offers up to 40% discounts on customized gifts.
  • Cybersecurity: Advanced digital safety solutions​.

Advertising Opportunities

WeWork provides various channels for brands to promote themselves effectively within its ecosystem:

• Advertising Formats:
  • Digital Signage: Advertisements on 160+ TV screens across India.
  • Community Newsletters: Weekly outreach to WeWork’s member base.
  • A4 Tabletops and Standees: Placement in meeting rooms and common areas.
  • In-App and Email Notifications: Direct engagement with the community via the WeWork Member App.
  • Promotional Spaces: Showcase products or services in WeWork’s shared spaces​.

Studios at WeWork

Dedicated spaces for creators, podcasters, and video producers to develop high-quality content:

• Studio Features:
  • Facilities for live streaming, podcast recording, and HD video shooting.
  • Green-screen backgrounds for versatile video production.
  • Professional-grade audio recording setups.
• Target Users: Podcasters, live-streamers, and content creators looking for professional spaces​.

Event Hosting

WeWork offers versatile spaces for events, workshops, and film shoots:

• Event Types:
  • Large-Scale Events: Town halls, roadshows, and product launches with a capacity of up to 200 people.
  • Workshops and Conferences: Fully equipped rooms for meetings and training sessions.
  • Pop-Up Events: Showcase brands and products in common areas.
  • Filming Locations: Aesthetic spaces for photography or film production.
• Support Services:
  • On-ground teams assist with AV equipment, catering, and event logistics​.

Changing the Office Game: WeWork’s Legacy of Innovation

WeWork has significantly influenced the coworking industry by popularizing flexible workspace solutions and fostering collaborative environments. Its rapid expansion and innovative approach have reshaped traditional office dynamics, encouraging businesses to adopt more adaptable workspaces. At its peak, WeWork operated in over 700 locations across 39 countries.

In 2017, WeWork launched the Creator Awards, a global initiative to recognize and reward creators across various industries. This program provided over $20 million in funding to entrepreneurs, artists, and nonprofits, supporting innovative projects worldwide.

In November 2023, WeWork filed for Chapter 11 bankruptcy protection, citing liabilities between $10 billion and $50 billion. By June 2024, WeWork successfully emerged from bankruptcy after implementing a comprehensive restructuring plan. The plan included eliminating over $4 billion in debt and securing $400 million in new equity capital. Additionally, the company reduced its future lease obligations by approximately $12 billion, primarily by exiting 170 unprofitable locations, bringing its portfolio to about 600 sites in 37 countries. (U.S. News & World Report)

Better Together: The Power Partnerships Driving WeWork’s Success

WeWork has strategically partnered with various organizations to enhance its services and expand its global footprint. In November 2024, WeWork collaborated with Firstbase to support distributed workforces. This partnership allows Firstbase customers to include a WeWork All Access monthly membership in their employee onboarding packages, providing remote workers with flexible coworking spaces. (WeWork)

In October 2024, WeWork launched a network of coworking partner locations in collaboration with Vast Coworking Group. This initiative added over 75 coworking partner locations in more than 50 new markets across the United States and Canada, expanding WeWork’s global portfolio. (WeWork)

In January 2023, WeWork partnered with Captivate to bring digital content and advertising to its locations. This strategic partnership aimed to enhance the member experience by providing engaging content and advertising opportunities within WeWork spaces.

In August 2021, WeWork formed an exclusive strategic partnership with Cushman & Wakefield to deliver innovative flexible space operating platforms. This collaboration aimed to market both landlords and businesses on WeWork’s management experience platform and develop new solutions for flexible workspaces. (Cushman & Wakefield)

Balancing the Books: A Look at WeWork’s Financial Rollercoaster

WeWork has raised a total of $13.8 billion in equity funding across 17 funding rounds, with contributions from 36 institutional and corporate investors. SoftBank Group has been WeWork’s most prominent backer. Other notable institutional investors include Benchmark, Catalyst Investors, and Goldman Sachs. (Tracxn)

Key Funding Rounds 

In recent years, WeWork’s funding activities reflect its attempts to stabilize operations and maintain its presence in the market. On April 16, 2024, the company received an undisclosed amount in a post-IPO round. Earlier, on October 29, 2021, WeWork secured $150 million in another post-IPO round, generating $2.1 billion in revenue that year. This funding was supported by Cushman, a corporate investor.

In April 2021, WeWork raised $26.7 million in a post-IPO round. Prior to this, In September 2020, it raised $200 million in a Series J round from Trustbridge Partners, with $3.4 million in reported revenue. The same year, in August, SoftBank Group provided $1.1 billion in conventional debt financing.

WeWork’s largest funding rounds occurred during its peak years. In 2018, the company raised $3 billion and $1 billion in two Series I rounds, primarily backed by SoftBank Group. SoftBank continued to play a crucial role in WeWork’s growth, including a $4.4 billion investment in 2017 during a Series H round through its Vision Fund. WeWork also relied on debt financing to support its operations. In December 2019, the company secured $1.8 billion in conventional debt from Goldman Sachs. 

Revenue

In FY 2016-17, the company started with a modest revenue of ₹0.3 crore, which skyrocketed to ₹1,422.8 crore by FY 2022-23. The sharp rise in revenue from ₹826.3 crore in FY 2021-22 to ₹1,422.8 crore in FY 2022-23 highlights the post-pandemic recovery and growing adoption of hybrid work models. Despite revenue growth and improved EBITDA, WeWork has faced persistent challenges in achieving net profitability. The company reported a net loss of ₹(146.8 crore) in FY 2022-23, a marked improvement compared to the ₹(461.8 crore) loss in FY 2021-22. 

All Work and No Play? Not at WeWork!

WeWork has redefined the concept of workspaces by focusing on flexibility, collaboration, and technology-driven innovation. The company started with a simple yet transformative idea: to create dynamic environments where professionals and businesses of all sizes could thrive. Over the years, it has expanded its offerings to include private offices, hot desks, meeting rooms, and even on-demand workspaces. These solutions cater to the evolving needs of freelancers, startups, and large corporations, ensuring that everyone can find a workspace that suits their requirements.

The company’s emphasis on community is one of its defining features. By fostering a network of like-minded individuals and businesses, WeWork has created spaces where ideas flow freely and collaborations flourish. Its integration of technology, such as smart building systems and workspace management software, has further enhanced the member experience. These innovations allow companies to adapt quickly to changing work models, making WeWork a leader in the coworking market.

WeWork’s journey has not been without challenges, including financial difficulties and a global shift in work culture.For those interested in learning more about innovative ventures like WeWork, be sure to explore other articles on Venture Kites. Discover insights about companies transforming industries and take inspiration from their journeys to fuel your entrepreneurial spirit.