We Work Did Not Work (follow-up)

Last May 24, 2019 I posted this 'We Work Will It Work?'

Sadly, I was right. Just a few months after I posted all went downhill. It makes me wonder how people behind Softbank and probably other venture capitalist firms looked at the business models so highly even it it wasn't even that unique in the first place. It does seem that the start up industry can easily be charmed or duped by very charming and ambitious CEOs like Adam Neumann. Other epic charmers are Elizabeth Holmes of Theranos and Billy McFarland of Fyre Festival. These people seemed to get capitalist money easily and burn it to the ground. Adam Neumann even got rewarded for his futility and got about $1.6B exit for his efforts.

The startup industry is poised to take advantage of the opportunities of the Covid-19 pandemic. Some will inevitably not survive but others will thrive. Being mostly technology companies my expectation is most will thrive. Those who survive will learn it's lesson and become stronger as the economy improves. Those with similar profiles like We Work though and built on charm will hopefully disappear.

 

Theranos Scam

Looking at one of the biggest scams in recent history. Here's the story of how silicon valley can get be charmed by a grandiose idea and an aggressive charmer. I'm sure there are probably more stories like this but this should be on of the more elaborate ones. WeWork, while not a scam I think can also be one of the good sobering stories for the startup industry. I will post a video (not mine) about it as well.