The owner of co-working spaces all over the world, WeWork, is currently engaged in discussions to obtain SpaceIQ true estate-based software, according to familiar individuals.
An agreement for SpaceIQ, a manager and analytical software developer from Silicon Valley that uses office room efficiently, might assist WeWork to persuade Wall Street to be at least somewhat of an IPO technologic business. In April, WeWork said that it had filed for a government offer confidentially, and this month the Wall Street Journal announced that its debut was scheduled in September.
The sources, which requested not to be named because the negotiations were private, did not provide any conditions. SpaceIQ has increased the risk financing by approximately $11.5 million.
A spokesman for WeWork refused to comment. A SpaceIQ spokesman told us in an e-mail that “media inquiries are being squeezed through the Corporate Communications Team of WeWork.”
In January, WeWork, which previously this year renamed We Company to expand beyond its co-working industry, was last worth about $36 billion, following the investment of the Japanese technology and telecommunications giant SoftBank in the company of about $2 billion. In the first quarter, WeWork lost 250 million dollars and sales more than doubled to 728.3 million dollars.
Just as investments view cash-burning companies which have raised trillions of private capital as a fuel for growth, it is increasingly difficult to justify their latest evaluation–or premium–in public markets. Uber has been trading under its IPO cost of $45 since May, and the rival of bigger riders Lyft has remained below the initial cost of $72 since March.
As investors, it is progressively hard to justify their most recent evaluations–or premiums–on government markets, as cash-burning firms that have increased trillions of private capitalists. Since May the rivals of larger drivers Lyft has been trading under its IPO price of $45 and has stayed below its original price of $72 since March.
Earlier this year, WeWork changed its name to We Company to reflect its expansion beyond the shared office market. After Japan’s technology and telecommunications giant SoftBank invested about $2 billion in the company in January, WeWork last valued about $36 billion. WeWork lost $264 million in the first quarter, and revenues more than doubled to $7.23 billion.
As investors become more and more “burning” companies’ sustainability, it is increasingly difficult to justify their latest valuations – or premiums relative to their valuations – in the open market. . These companies have raised billions of dollars in private capital to drive expansion. Uber’s share price is lower than the $45 IPO issue price in May, and the smaller car service competitor Lyft’s share price is still lower than the March issue price of $72.
WeWork has made a series of acquisitions in recent years, including a deal with Q management in April this year. Q is a software platform that provides recruitment services for the office. According to reports, WeWork also spent $200 million to acquire Meetup, a service that helps people organize meetings.