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Lessons from the WeWork fiasco

Investors must be extra careful about buying into catchy acronyms and hype

Devangshu Datta

WeWork is a case study and an object lesson for investors not to buy into stories without looking for the reality behind the hype. Until April 2019, WeWork was a “unicorn” with great valuations and excellent public relations. It had charismatic leadership and lofty mission statements. It had funding from the biggest venture capitalists (VC). It was hailed as an innovative tech-driven company.  Then the story started unravelling. When the company filed for an initial public offering (IPO), analysts took critical looks at the numbers and the business model. It was not ...