One of WeWork spaces. (Image via Bloomberg)

Before Its IPO, WeWork CEO Cashed Out Over $700 Million

WeWork is founded in 2010 by Adam Neumann and Miguel McKelvey. WeWork is a company that provides workspaces for companies that don’t have office. They are also the pioneer of co-working space concept. Earlier this month, it is reported that WeWork is planning to host an analyst day for Wall Street banks on July 31. It is said that the company is preparing for an initial public offering (IPO) as well. Earlier this year, on January, WeWork received a boost in stake by Japan’s SoftBank for $2 billion. However, the number is actually lower than what WeWork has expected before.

There is something quite unusual ahead of WeWork’s IPO. It is reported that WeWork co-founder, Adam Neumann, cashed out more than $700 million from the company. Most of company founders usually wait until after a company holds its public offering before cashing out their holdings. Nonetheless, Neumann’s shareholder is still the largest in the company. Before he cashed out that money, it is reported that Neumman has already had a family office to invest. Moreover, he has hired financial professionals to take care of it.

Although this is an unusual move from a founder, it turns out that Evan Spiegel, the founder of Snapchat, did the same thing as well. Ahead of Snap’s IPO in 2017, it is reported that he sold $8 million in stock and borrowed $20 million from Snap.