I was so spoilt for chose this week that I dithered over my choice for Book of the Week for quite some time before settling on Billion Dollar Loser. But it’s hard to resist a book about a spectacular business failure – you may remember how much I enjoyed Bad Blood last year and I was hoping this would do the same sort of thing.
Reeves Wiedeman’s book examines the rise and fall of Adam Neumann and his company WeWork. Many people probably only heard of WeWork when its first attempt to float on the stock market imploded in spectacular style. Neumann grew up in Israel and the US, completed his compulsory military service and then moved to the US for college, determined to make his fortune. After a false start with a baby clothing company, he got into the co-working business – leasing empty office space from landlord and then renting it out to freelancers, small businesses, tech startups and the like. It wasn’t a new idea, but WeWork attracted billions of dollars from investors as it grew at breakneck speed and expanded around the world with a vision of “elevating the world’s consciousness”.
So this isn’t quite Bad Blood, and WeWork isn’t quite Theranos, but Billion Dollar Loser is an incredibly readable account of the rise and fall of a tech unicorn – a business that investors poured money into through years of losses in the hope that it would eventually make money and then be the next big thing when it finally floated in the stock exchange and they could cash out. Caught up in it all are the staff – many of whom stayed in jobs that didn’t pay very well because of the stock options they were promised and because they believed in Neumann’s vision. Like Theranos’s Elizabeth Holmes, Neumann is a charismatic figure – who brought in spiritualism and created an almost cult like atmosphere inside the company. And his wife is Gwyneth Paltrow’s cousin so there’s an added Goop-y layer to all of this that Theranos didn’t have.
Wiedemann has written a fast-paced page turner, that exposes the fundamental problems with WeWork’s business plan – including (but not limited to) the costs involved in real estate and the need for actual physical infrastructure in your offices and to keep your tenants happy! Like Bad Blood, it leaves you with a fair few questions, but the story of WeWork isn’t done yet – their valuation for their stock market floatation was published at the end of March (spoiler: it’s a lot less than it was the first time around) and Neumann is also reported to be planning a new venture. A Hulu documentary about WeWork came it last week and Cosmo have just published a profile of Rebekah Paltrow Neumann so this probably isn’t the last we’ve heard of WeWork – but as a starting point this is a really good one!
My copy of Billion Dollar Loser came from the library, but it’s available now from all the usual sources – like Kindle and Kobo and should be available to order from your bookshop of choice or bookshop.org.uk . It’s been so long now since bookshops were open for in person browsing that I have no idea if you’ll be able to pick it up in store without ordering!