Office sharing company WeWork is looking to raise new funds at a valuation of $35 billion, according to an executive at SoftBank, which is a major WeWork investor.
Rajeev Misra, who runs SoftBank’s $100 billion Vision Fund, said the company would be worth $100 billion within the next few years.
If WeWork manages to secure a new round of investment at that valuation, WeWork would overtake SpaceX and Airbnb to become the second most valuable startup in the world.
WeWork, last said to be valued at $20 billion, is trying to counter talk of overvaluation by pointing to its expansion beyond taking on long-term leases and jazzing up office spaces.
However, some skeptics think WeWork is a jumped up real-estate company.
Property startup WeWork is seeking to raise new funds at a valuation of $35 billion, according to one of its biggest investors.
Rajeev Misra, chief executive of SoftBank’s $100 billion Vision Fund, told the CogX conference in London that WeWork was in the process of raising capital at the newly disclosed valuation, and predicted it would be worth $100 billion in the next few years.
Misra’s comments will raise eyebrows, given WeWork has raised several billion dollars in venture capital to date, another $702 million in its bond market debut, and is burning through cash. WeWork’s most recent fundraise, a Series G round, reportedly valued the company at $20 billion.
A $35 billion valuation would also mean WeWork has overtaken Airbnb and SpaceX to become the second most valuable startup in the world behind Uber.
SoftBank invested $4.4 billion in WeWork in March 2017, some of it through its Vision Fund. The deal valued WeWork at $17 billion at the time, despite some skeptics seeing WeWork as an over-valued real-estate company. WeWork then went on to raise another $760 million in July 2017, which is the round that reportedly bumped the company’s valuation up to $20 billion.
“A year ago, we were told that WeWork was overvalued [at] $17 billion for real estate,” Misra said on Tuesday. “Guess what, they are looking to raise capital at $35 billion today. Maybe it’s overvalued, but I believe they’ll be a $100 billion company in the next few years.”
Misra did not go into further detail about WeWork’s current fundraising efforts, nor did he say whether SoftBank was participating. A SoftBank spokesman declined to provide additional clarification.
WeWork declined to comment on the valuation number and the possibility of a raise.
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Source:: Business Insider