WeWork is about to close a round of private equity financing between $300-400 million that will value the startup at around $6 billion. The operator of co-working spaces for startups and other businesses has been growing at breakneck speed and anticipates almost tripling its revenue next year. Forbes writes in detail about the company’s rise from a single location to real estate mogul for the startup world.
Over the next 12 months the company expects to triple its membership from 14,000 to 46,000 and expand to 60 locations from 21 today and 9 just a year ago. Now WeWork is the fastest-growing lessee of new office space in New York and next year will become the fastest-growing lessee of new space in America as it spreads to cities such as Austin and Chicago, not to mention London, Amsterdam and Tel Aviv. WeWork will gross an estimated $150 million this year with operating margins of 30%. Current plans will push revenue to more than $400 million next year. In February JPMorgan led a massive (and secret) $150 million investment in the company along with the Harvard Corp., Zuckerman and Benchmark. The deal valued WeWork at $1.5 billion.