For Adam Neumann’s next venture after his rise and fall at WeWork, venture capital powerhouse Andreessen Horowitz has promised a big financial commitment.
The venture capital firm’s investment in Flow, a residential real estate company run by Neumann, is about $350 million, said a person familiar with the deal who asked not to be identified because the information is private. The investment will be the largest check written for a single round of endorsement in the fund’s history, according to the New York Timeswho first reported on the deal.
Details about Flow are scant, but the company is looking to address the US housing crisis, in part, by offering community-focused services in apartment properties. Already, Neumann has purchased from residential units in Atlanta; Fort Lauderdale, Florida; Miami; and Nashville, where he plans to operate as owner.
The housing company is not affiliated with Flowcarbon, another startup Neumann helped start that specializes in selling carbon credits on a blockchain, a person familiar with the matter said.
The association between Andreessen Horowitz and Neumann is notable for several reasons. It’s validation for the controversial co-founder of WeWork. And Marc Andreessen, who co-founded the venture capital firm and wrote a blog post Monday in support of Neumann’s company, openly opposed a proposed housing development in his hometown of Atherton, California, this month.
“We understand how difficult it is to build something like this, and we love seeing repeat founders building on past successes by growing from lessons learned,” Andreessen wrote in the blog post. “For Adam, successes and the lessons are many, and we are excited to embark on this journey with him and his colleagues building the future of life.”