Japans softbank invests in us office space sharing startup wework
You're referring to the investment made by SoftBank, a Japanese conglomerate, in WeWork, a US-based office space sharing startup.
In 2019, SoftBank invested $2 billion in WeWork, valuing the company at around $47 billion. This investment was part of a larger funding round that also included investments from other investors, such as JPMorgan Chase and Goldman Sachs.
SoftBank's investment in WeWork was significant, as it marked one of the largest investments ever made in a startup. The investment was also seen as a vote of confidence in WeWork's business model, which focuses on providing shared office space to entrepreneurs, startups, and small businesses.
WeWork's business model is based on providing flexible, shared office space to its members, who can rent desks, offices, or entire floors on a short-term basis. The company has expanded rapidly since its founding in 2010, and now operates in over 100 cities around the world.
SoftBank's investment in WeWork was seen as a strategic move, as it allowed the Japanese conglomerate to gain a foothold in the rapidly growing shared office space market. SoftBank has a history of investing in startups and scaling them up to become major players in their respective industries.
However, WeWork's valuation and business model have been subject to scrutiny in recent years, and the company has faced significant challenges, including a failed initial public offering (IPO) in 2019 and a major restructuring effort in 2020.
Despite these challenges, WeWork remains one of the largest and most well-known shared office space providers in the world, and SoftBank's investment in the company is seen as a significant bet on the future of the shared office space market.