How I Built This with Guy Raz HIBT Lab! WeWork: Miguel McKelvey
Apr 21, 2022
Miguel McKelvey, co-founder of WeWork, shares a candid look back at the company's meteoric rise and subsequent fall from the $47 billion valuation. He discusses leadership dynamics with co-founder Adam Neumann and the challenges they faced during aggressive expansion. McKelvey reflects on personal growth after leaving WeWork, emphasizing his journey through therapy and new social ventures aimed at supporting entrepreneurs of color. His insights reveal the complexities of building a billion-dollar business and the lessons learned from failure.
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Diversification Challenges
- WeWork's expansion into WeLive, WeGrow, and acquisitions like Meetup seemed promising but proved challenging to integrate.
- While not financially detrimental, these ventures distracted from the core business model.
Unsustainable Growth
- WeWork's rapid expansion wasn't the primary cause of its downfall.
- The failure stemmed from the unsustainable assumption of continuous access to capital for fueling further growth.
Market Perception and Losses
- WeWork's high valuation attracted skepticism while its losses, though intentional for growth, negatively impacted public perception.
- The market's changing sentiment after Uber’s IPO further contributed to WeWork’s challenges.