The former CEO and co-founder of WeWork, Adam Neumann, invested $30 million in a startup called Alfred.
The former chief executive and co-founder of WeWork, a commercial real estate company, has invested in another startup. This time, Adam Neumann spent multi-million on investments for a company that promises the future of residential living, Alfred.
Last year, Neumann had left his company after attempts to make WeWork go public. Now, he has returned to the real estate industry by investing $30 million in another startup. That company is Alfred Club, Inc. A spokesperson said that Alfred provides a la concierge services to residential apartments, CNN Business reported.
Ousted WeWork CEO Adam Neumann's family office is investing in Alfred, a startup that works with residential buildings to provide a concierge-like services for residents https://t.co/g5zldwt5zo
— CNN Business (@CNNBusiness) October 15, 2020
Alfred Club managed to raise $42 million in its latest round of funding, including Neumann’s. While Bloomberg first reported the investment amount to the recent round of funding, sources confirmed the figure to CNN Business. Particularly, the funding came from the ousted CEO’s family investment office, 166 2nd LLC. Moreover, other investors include past investor Sparks Capital and New Enterprise Associates. Also, apartment developer Greystar Real Estate Partners LLC backed the startup.
A Neumann spokesperson also told CNN Business that Neumann was impressed by what Alfred had done to transform apartment living. “Adam is excited to support Marcela, Jess, and the rest of the Hello Alfred team as the company continues to grow,” the spokesperson added.
Meanwhile, Alfred CEO Marcela Sapone expressed her gratefulness for the recent funding. She also thanked the investors for putting their confidence in the company’s strategy and vision. “This most recent raise provides us with the financing needed to grow in sync with the expanding in-home economy.”
Furthermore, CNN Business noted that Alfred has worked with residential buildings to offer services to the residents. Previously, Sapone has compared Alfred to Neumann’s previous firm, WeWork. She said as WeWork transformed residential real-estate, Hello Alfred redefines city living.
During his WeWork days, Neumann reportedly wanted to extend his company beyond office work. So, he also began a project called WeLive for residential. However, Bloomberg said it never went beyond one building for New York City and another near Washington DC. Similarly, it also envisioned the same thing to other areas of life, like its WeGrow for an elementary school. Now, that company, which has changed its name to We Co., intends to revert its original branding back to WeWork.
Last year, after his failed efforts to make WeWork go public, his company sought the funding of SoftBank Group. Taking bailout money worth billions lead to the layoff of thousands of jobs.