WeWork’s Adam Neumann will get $350 million for housing startup

For Adam Neumann’s subsequent enterprise after his rise and fall at WeWork, the enterprise capital powerhouse Andreessen Horowitz pledged a giant monetary dedication.

The enterprise capital agency’s funding in Circulation, a residential actual property firm led by Neumann, is roughly $350 million, mentioned an individual conversant in the deal who requested to not be recognized as a result of the data is non-public. The funding would be the largest verify written for a single spherical of backing within the fund’s historical past, based on the New York Instances, which first reported on the deal.

Particulars on Circulation are scant, however the firm seeks to deal with the U.S. housing disaster, partly by providing community-centric companies in condo properties. Already, Neumann has bought 1000’s of residential models in Atlanta; Fort Lauderdale, Fla.; Miami; and Nashville, the place he plans to function as landlord.

The housing firm is unaffiliated with Flowcarbon, one other startup Neumann helped begin, which focuses on promoting carbon credit on a blockchain, mentioned an individual conversant in the matter.

The partnership between Andreessen Horowitz and Neumann is noteworthy for a number of causes. It’s a validation for the controversial WeWork co-founder. And Marc Andreessen, who co-founded the enterprise capital agency and wrote a weblog submit Monday in assist of Neumann’s enterprise, brazenly objected to a housing improvement proposal in his house metropolis of Atherton, Calif., this month.

“We understand how difficult it is to build something like this, and we love seeing repeat-founders build on past successes by growing from lessons learned,” Andreessen wrote within the weblog submit. “For Adam, the successes and lessons are plenty, and we are excited to go on this journey with him and his colleagues building the future of living.”