WeWork as the AWS of Commercial Real Estate
A lot has been written in the past few days about the upcoming WeWork IPO. I had linked to a few articles on Saturday and FTAlphaville has some pretty sarcastic but good coverage as well.
Yesterday then the always brilliant Stratechery came out with in interesting post. Ben Thompson thinks that WeWork could develop into something like AWS (for real estate) which now is repsonsible for most of Amazon’s profits. But he clearly acknowledges there are a lot of governance issues etc. etc. The “WeWork is like AWS” story is nothing new and is mostly pushed by WeWork itself and combined with what they think is the adressable market (hint: all commercial real estate globally) could justify almost any valuation.
WeWork’s actual product: Open Plan offices (for start-ups and wannabes)
What I have been missing in the whole discussion so far is a look at WeWork’s actual product which in my opinion is the following:
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A few days ago, I posted the link to a Reddit collection of Q2 investment letters. Many of these letters plus some others in my opinion are good inspirations to lok for new ideas. With less time available for me to create “original” ideas, I mentioned some time ago that I will use these letters much more to find interesting cases than in the past.
Inittially, I wanted to create my private “to do”list of companies that I want to look at. The criteria for selcting ideas is quite subjective.
However in order to leverage my readership, I decided to create a post with my selected “stolen ideas” and hope for some constructive feedback from my readers. Here is the list what I found interesting and why.
Selected ideas from Q2 letters:
Choice Equities: Par Technology
Interesting case of a “sum-of parts” company with a SaaS business hidden behind other stuff
One of the better managed German companies. Cyclical but potentially good opportunityin a real economic downturn. Business is hard to disrupt
Alta Fox: Keyword Studios
Interesting business model (outsourcing of Video Game prodcution) and European based company. Expensive but potentially very interesting.
The subtitel claims that the book explains” Venture Capital and How to get it”. It is written by Scott Kupor, “employee Nr. 1 ” of Andreesen Horrowitz (A16Z), one of the most famous newer VC firms in Silicon Valley (Sand Hill Road is a street in Silicon Valley where many famous VCs have their offices).