Disrupting the World's Largest Asset Class with Adam Neumann

After a16z announced our investment into Adam Neumann’s new company, Flow, it felt like almost everyone - whether it was other VCs, founders, or journalists - had something to say.
But the one person that you didn’t hear from was Adam himself.
In this never-before shared footage from a16z’s American Dynamism Summit in Washington DC, Adam Neumann sits down with Marc Andreessen and David Ulevitch, to discuss the opportunities that have emerged from post-pandemic shifts in both work and home, and what Flow is doing to address that.
Find the full library of American Dynamism Summit recordings at a16z.com/ad-summit.
Timestamps:
00:00 - Introduction
01:14 - Getting back in the arena
08:45 - The opportunity in housing
17:16 - Lessons from WeWork
20:34 - Work & home post-pandemic
29:54 - Moving to the cloud
37:44 - Office serendipity
41:18 - Building Flow
47:33 - Cities as startups
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. For more details please see a16z.com/disclosures.

[@a16z]

Timestamps: 00:00 - Introduction 01:14 - Getting back in the arena 08:45 - The opportunity in housing 17:16 - Lessons from WeWork 20:34 - Work & home post-pandemic 29:54 - Moving to the cloud 37:44 - Office serendipity 41:18 - Building Flow 47:33 - Cities as startups

[@miniaddict4534]

As the top comment said, what an embarrassment.

[@computron5824]

The completely insane thing is that Marc says that cities like SF have not been permitting enough housing units, but what he doesn't say is that he's one of those people who tries to block housing construction to limit supply. Just based on that, whatever this firm is planning here will be terrible for the market.

[@mefisto05s.20]

Where's your proof?

[@tommaso99]

So... it's essentially a housing co-op where a corporation owns the lion's share of the equity but tenants are responsible for maintenance/repairs etc in order to give them the feeling of being homeowners - the burden thereof without any of the benefit. Genius. Oh, and the kicker is the tenants also have to use his banking services. To be fair, why wouldn't VC's be willing to invest 9 figures with him. He's a safe bet with an unblemished track record.

[@bbafford]

That isn't how a co-op works. A co-op is a setup where a corporation owns the building and the corporation is membership based, with membership granted by way of a share purchase in the cooperative. Each shareholder in the legal entity is granted the right to occupy one housing unit.

[@tommaso99]

@@bbafford Yup, i know how a co-op works. I live in one. Not sure if you actually read what i wrote, but to clarify - my point is that the model he is describing is functionally very similar. The residents will own shares in the building but the residential shares will not amount to the whole. In this paradigm the residents will only own, in total, a small fraction of the equity in building and an external corporation owns the majority. Hope that's more clear.

[@todbrilliant2241]

Yep. But I think it’s even closer to the one percent cash back model on scammy credit cards. Except it’ll be on your rent. If you stay for 5 years. And if you don’t ask for fresh paint, carpets, repairs…all the things landlords are legally required to provide.

[@tommaso99]

@@todbrilliant2241 good analogy! Ur right, similar machinations! I cannot stand how he couches his own narcissistic greed as philanthropy.

[@TarotPolitics]

No what he’s doing is giving “rewards” in crypto currencies which will force tenants to have to sign up for the scam-infested crypto space. Andreessen is DESPERATE to make crypto a thing so he will tack impossible valuations onto companies that will do the pumping.

[@MeetKevin]

I don't think this guy has ever been a tenant or a landlord.

[@spol]

It's understandable that you are concerned as a landlord.

[@vincentyagazie8736]

That's why he talks the way he does; he only sees solutions to problems. That's why he will revolutionize the system. It's already working, I live in one of those apartments.

[@kenseville9469]

@@vincentyagazie8736 I was hoping someone who is living in one of these units would comment. What problem is Flow solving?

[@zedrockiby]

@@vincentyagazie8736 What is it like?

[@vincentyagazie8736]

@@kenseville9469 Exactly like he explained, they try to make a communal experience. Alot of updated common areas. And something significant I noticed is the financial services. Credit cards offered to tenants that make it easier for you to communicate with management financially.

[@SaschaPallenberg]

Everything that's wrong with the VC world in one podcast. The intro is already mind boggling

[@lavs8696]

So basically this company gives you all the downside of being a homeowner (all the costs of repairing your own stuff) with very little of the of the upside (only a fraction of the rising property value). Incredible! How is everyone not on board with this??

[@bambookers]

How this guy has scammed so many investors is beyond me. He is so full of it. It boggles my mind that he conned another investor out of $350 million.

[@flytoday]

A16z is working on a P&D growth and investment curve

[@americaworks4202]

All you have to do is become a Tall “handsome” white middle aged male with a full head of hair and an accent, with a dash of wit and you will get there. 😅

[@pavspol]

@@americaworks4202 There’s definitely more to the story than his looks lol Story we’re not being told..

[@americaworks4202]

​@@pavspol Like what? What story?

[@pavspol]

@@americaworks4202 JP Morgan and Goldman Sachs dont invest in you just because youre a tall and charismatic young man. Like come on 🤣

[@buraktutar2451]

crazy that these guys invested in him, huge dent in their reputation

[@zedrockiby]

what’s so wrong about it? love him or loathe him, adam built wework

[@andrewm6786]

What an embarrassment for A16z

[@constantineandreu9377]

I concur👌

[@francismumbi49]

Neumann said 5% and 500bps in one lines. Same thing.... This guy is a great salesman....

[@jmvanlith]

Still haven't learned how Flow will actually work.

[@bashmohandes]

That's the thing, it won't :D

[@AdamHaywardHappyCat]

The clue is in the name "Flow" and the part at 46:20. With Flow you unclog your own toilet, leading to more Flow.

[@flytoday]

A16z model is built on the bigger sucker model.

[@Diddy1970AD]

They spoke for an hour and said nothing. Poor tenant will pay rich landlord basically.

[@SeanMasters]

Utter nonsense. First, those VCs who don't see through the ridiculous word-salad shouldn't be in the business. Second, he's essentially talking about building a "company town" which sits in a legal gray area at best, outright illegal at worst, and is unethical regardless. What utter garbage.

[@chrisl8873]

Read up on a company town called Bournville in the UK, then revisit your comments

[@leverageearnings8387]

Marc is the same guy that is saying he’s pro city and community but you can google that he doesn’t want multifamily buildings in his neighborhood where he lives. Lol all lies

[@jamesmarsh4047]

I have no idea how az16 chooses founders

[@RadicalNuance]

A lot of words while saying nothing

[@kevinbenitez42]

Im not a real estate guy, but it seems the best way to motivate people is not to prevent people from having privacy and tieing their financial assets down. In Israel it works because of the culture but it seems flow can only grow as fast as the culture changes which is pretty hard to change

[@Aramil4]

Plunger metaphor at 46:21

[@eshawn____2373]

Lol the “user”. Dude just say tenant 😂. You’re improving the tenant experience for long term rentals. Cool

[@rantg]

Mark is so good at talking bs and look like he know what he is talking about. It seems from his body language that he is aware when he talk about things he doesn't know, look how he moves his eyes when he talk about things he doesn't understand. Look how he close them.

[@youdontsay2529]

You nailed it. I was thinking the same exact thing. His body language felt off while he prattled on about nothing.

[@stevehan8799]

I think their "product" will cater to a very specific audience

[@InvestOrama]

These guys can talk... I'm 15 min in and we haven't really started

[@turismo949]

'elevating the world's consciousness' combined with the a16z marketing juggernaut will be fun to watch. New tv series anyone? Perhaps a netflix documentary on modern urban living with a vignette on flow-life?

[@davidanalyst671]

adam's idea of a community is fantastic. For extroverts.

[@TansuTansu2]

And He's baaaack.......!

[@zedrockiby]

Obviously he is great at what he does, but when I hear him talk, Marc Andreessen always comes across as fairly unoriginal in his thinking. Even on Joe Rogan I was surprised just how pedestrian his thoughts and ideas were. He was also picked apart by peter thiel in their debate. Curious 🧐

[@Wisagapi]

The audience needs to cheer up 😊

[@drewgatewood1864]

I'd really enjoy it if this company's only asset was $350 million in obligations on master leases that they took out on apartment buildings in "emerging" residential areas around the country... Listening to him speak gives me Markus Braun Wirecard vibes.

[@HowardThompson-ux7kf]

Why is this guy not in prison?

[@brandoncanonizado3086]

See You at Tech Week !!!!!

[@kpvalues]

The promise of living on cloud nine. Before it was working, now living... It's the same story all over again. I guess the next big thing: shopping😂😂😂

[@aleksanderbiesaga]

Who led the due diligence process? DG???

[@brianpayne626]

I'm just wondering how much extra all the community & profit-sharing will add to my rent as a tenant? I'd rather save as much money as possible on the rent, and just invest the extra myself.

[@ardagenc4674]

This wasnt so promising If he were honest and said something like: “I saw the idea from another company, know they dont have the same resources and reach as me and when the correct time came I use this opportunity ” I would have probably give hime a second chance

[@laujanson]

What's the other company?

[@mveronika]

@@laujanson there’s many trying to work on this concept. I had a startup in college before Flow was announced. What Adam has that others don’t is a huge real estate portfolio from the start.

[@waxcomb]

Looking forward to corporations owning all the property and having to rent based on monopolistic pricing!

[@aris9560]

Idk... Marc's name gives a lot of credibility to this venture but something is really off with Adam Neumann

[@InvestOrama]

So they're monetizing by selling financial services on top of rent? Feels like a16z is a VC that just co-bought a bunch of flats with an idea of doing some fancy upselling

[@nat.serrano]

To me sounds like a good idea, albeit VERY ambitious. 1) a coop/property mgr to find tenants and give the community experience 2) a financial pillar that provides financing to buy shares (or right to live in the unit and community) 3) another pillar to buy more assets/multifamilies if they add the ability to flex-live aka have access to all communities to have a semi nomad experience then it will be the determining factor. I wish I could pursue this idea, but I don't have enough cash to do it... RE is obviously capex intensive and difficult to scale quickly (I have a few properties), but Adam has shown that he knows how to scale RE quickly (WeWork) so I think he has a chance... If I was him I would start with 3 cities (New York, Miami, Austin) to find PMF.

[@RR-et6zp]

can you explain to me in detail how it works pls? In a dumber way @eblman5218

[@user-wr4yl7tx3w]

Start with your own town. If you don’t want them built it here, how do you expect it to be build elsewhere.

[@homeiztherealestatesocialn9082]

Capital markets are supposed to allocate capital to the most efficient businesses. This is because it is widely believed that private investors, in pursuit of their individual profit, will end up selecting the most profitable businesses from the list of opportunities accorded to them. However, this does not see, to be the case now. The business may be unprofitable to its owners and shareholders. However, it could still be very profitable to the venture capitalists. Wishing all the best to Adam.

[@ramiroochoa4275]

I learned how to turn a regular idea into a 10billions one

[@Katana_00]

Fractional shares but for housing. The future = less equity = depressing af

[@Asiaguydude]

Adam Neumann or Alfred E Neumann?

[@FireFishMike]

Marc fell for this snake oil salesman’s pitch?? This is the most convoluted ridiculous spin of WeWork’s WeLive model Adam tried (and failed). The elevated experience with the resident is nothing more than a rented studio apartment wish shared living space. Who would pay for that over ownership?!? If Adam didn’t believe in ownership of property, why did he buy up all of the commercial buildings then rent them back to WeWork? Why does his family asset management company own your Flow home and not you, the guy/gal living in it, paying for it and lastly taking care of it? Notice how he spins the responsibility for the renter to maintain the upkeep of the property so that they create value for themselves. In the real world, when you rent, the landlord is responsible for the upkeep, not you!! 46:22 - HE JUST SAID IT! So if your toilet clogs in your Flow apartment (which is probably shared by the way), it’s on you to plunge it even though Adam Newmann owns it. So he doesn’t need to worry about staffing a superintendent. How stupid are people who would fall for this nonsense?!?

[@JohnLaurydallastechrecruiter]

"stepped down"

[@hippocratech]

Maybe a16z wants him to fail again, so they can make another tv series!

[@FireFishMike]

I am seriously questioning the gullible level that people like @a16z are clearly at. I have a bridge I’d love to sell them that will revolutionize how you cross a body of water. It looks like a life preserver and the ‘experience’ crossing the bridge may leave you wet, but it’s the first bridge of its kind. It is so simple and elegant it is visually invisible. And the ROI on the commuter tolls is astronomical because there’s no maintenance required since the bridge is imaginary, I mean elevated consciously.

[@fakeologist1]

Love this

[@Anon123454]

This is the dictionary definition of grifting LP management fees

[@constantineandreu9377]

Flow right back to 🇮🇱 and take Marc with you😂😂😂😂😂😂😂😂😂😂😂😂

[@MrDeshaunWilkins]

tenants become users Saudis: We got you

[@seanhope734]

This guy has Israel behind him

[@user-cp3mv6vw6p]

Hater

[@glenngouldification]

@@user-cp3mv6vw6pFree Palestine !

[@lavs8696]

silicon valley is so out of touch. he literally referred to every part outside of the "super cities" as "rural". their own downfall is 99% because of their own ignorance.

[@PatrickMichalina]

I think you mean “hubris”

[@lavs8696]

@@PatrickMichalina definitely more appropriate, couldn’t quite think of the right word.

[@kishorenadar116]

Came in for Adam but Marc stole the show....

[@RadicalNuance]

Americans never got the memo that when you sit down wearing a suit, you unbutton your jacket 🤣

[@grubadubful]

I understand why people don't like this guy, but he is working on a clear problem here - the market is enormous, and it sounds like he may have an interesting solution (will almost certainly evolve). Andreesen is a smart man, as is Horowitz, I would at least pay attention to the WHY they invested here...

[@todbrilliant2241]

How is Andreesen a smart man? Because he can make money? The fact that he doesn’t recognize the simple fact that infinite growth isn’t possible on a finite planet is a pretty big tell about his broad intelligence.

[@m1ar1vin]

People that argue "infinite growth is impossible on a finite planet" always fail to mention how close exactly we are to that magic limit of "we can't grow anymore". Are we 90% there? 95%? That question is technically right but practically completely irrelevant, since we are barely 10% there, in my opinion. Lot more room to grow. THEN we can think again, but it's irrelevant today.

[@Maheshmnz]

Being an anarchist means to work OUTSIDE systems. Anarchists have a vital role. Prob not better for them to be celebrated within a system. That’s not an anarchist, that’s a….

[@123asdzxc7]

Not quite sure how this solves the problem of expensive homes... there's a clear supply/demand problem that isn't allowed to figure itself out because of slumlords and governments working hand in hand

[@AlmightyFSM]

Andreessen staying on-brand by talking non-stop for an extended period of time while saying absolutely nothing insightful or novel, interspersed by making a bunch of unsubstantiated claims that conclude the current grift he's peddling is actually going to make the world a better place.

[@dwylhq874]

No thanks. Unsubscribed.

[@zedrockiby]

You can just leave quietly

[@dwylhq874]

You clearly aren’t a WeWork employee who got scammed by this guy… kzbin.info/www/bejne/jmOvqHyfgM2WsNE

[@WatchReporter]

The footwear choices on these 3 mooks are TRAGIC. This will end in tears.

[@Mike-gd2fv]

Comfort over formality.

[@charlielee3945]

Uhhhhhhmazin

[@andrekoeks]

But seriously tho... those sandals.

[@beatonthedonis]

America has drunk so deep from the capitalist Kool-Aid well, the entire country is turning into Pottersville at breakneck speed.

[@HostileTakeover555]

More failing upwards. He has proven to be of low moral character in more ways than one. This idea didn’t just pop into his head one day - he took it from someone else.

[@parker5548]

Who complains about someone “taking an idea” from someone else? Ideas are worthless. Grow up.

[@Anon48657]

Ideas are worthless, execution is the game

[@ns3359]

Looking forward to seeing him in jail and those that back him lose their shirts

[@fakeologist1]

They never go to jail

[@constantineandreu9377]

Timeshare👌😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂

[@4mIlr]

WeScam

[@user-cp3mv6vw6p]

Hater

[@cesarmelendezsahagun2036]

this is just another kind of SBF moment where VC's suck the middle member to another guy

[@chesstictacs3107]

Marc Andreesen apparently never learned to speak slowly. Does he know that listening to him is exhausting? No punctuation, no intonation…geez 🤕

[@gibranregiste-charles3847]

Bullshit absolutely does sell. Shocking.

[@BlindTakes]

ugh, this is such a bad look for a16z. Its baffling that they are actually promoting it.

[@skypickle29]

I want to see a Netflix series of how ‘wework’ failed.

[@necromancer7712]

This guy is inefficient manager. Why is he being given an audience again? I cant believe people sitting there and listening. Skip

[@user-tg1ig3kd6c]

custody teaser

[@suleimanpeshawari1032]

Sad! Very sad

[@weinazhang2529]

I like how tech guys are getting into the real estate! They only making it more expensive because they have to make 100 times on their investment. I’m a ground up real estate developer in downtown and I never take VC funds! Because there’s not enough profits to feeding them! Let’s see the future lawsuits on those 3😅😅😅

[@onteractive6688]

If you are doing this in developing country like Vietnam, our country, I will truly believe that you are really trying to elevate the human conciousness!

[@alexhoang1601]

Agree!

[@andy68686]

You have been practicing without even realizing it, it's called Comunism lol

[@alexhoang1601]

​@@andy68686 you know that's percisely why we need more investment from the west to actually elevate our experience 🤣 we have idea and vision, but we have no mean!!!

[@tipdub]

Heeeeellllll to the no

[@TheArbenGjoni]

Adam is great

[@edison1]

a16z just lost a bunch of money

[@constantineandreu9377]

350 to adam🤔 😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂

[@CaptainPlanet007]

Snake 🐍 Adam! SoftBank should sue this smuck for scamming them out of billions!

[@fakeologist1]

They can do their own due diligence

[@maasdd]

Adam is a genius! cant wait to see his journey with Flow

[@crazieeez]

Neuman made a billion from WeWork. He is out there building a new company. Most people with a billion will just gamble it away and die. Neuman is doing something useful. I commend him. The VC putting money into him, more power.

[@Diddy1970AD]

He didn't really 'make' anything, that billion was part of a huge loan to WeWork from Softbank which Neumann very nicely picked up when he exited.

[@StarStrife100]

Adam Neumann should be in prison imo - I would never work with someone who shares his values.

[@vvee4725]

Prison?! For what? Investors making shit investments?

[@vincenthus399]

Adam Neumann is a good entrepreneur. His investors kept throwing money at him at every higher valuations, and then the IPO failed. But that doesn't make him a bad person.

[@mglearsi]

What should he be in prison for? (Genuine question)

[@testing-vj2ke]

Ok bye

[@todbrilliant2241]

No doubt prisons will be his next real estate scam.

[@khalidalali186]

Lol, how this Jew continues to scam people is beyond me. He should be behind bars with Madoff.

[@demovideos187]

The parody writes itself. Brazenly claiming to be the smartest guys in the room, not because they’re thinking about their investors,but because they have a lot of money (and are white).

[@yuriybogun]

I do not trust this guy, I do not know exactly why.

[@HTOP1982]

This guy is a fantastic salesman. Just a terrible product ideator. He basically is selling the concept of serviced apartments on a day-to-day resort.

[@tl7211]

Disrupting the World's Largest Asset Class with one of the world's greatest snake oil seller . LIke WTF man.

[@hugopennmir]

The clown is back

[@scottdiamond3023]

Like the idea. But will find the competitor and give them my $. The virtue signalling by mr Neumann might have worked last time.

[@hugopennmir]

The big clown is back

[@slavmarin7827]

All of this is just another bullshit, but this character will most probably walk away with another billion in a couple of years. I wonder - do these two really believe in this, or do they want to line their pockets in the process?

[@benclr]

Despicable square. None of it makes sense beyond predation. Marc only needed a convenient idiot to roll out his politically charged thesis.

[@yujohnny3050]

scammers

[@SWISSCOLORVISION]

WeWork just went bankrupt, and now WeWork's founder Adam wants your money to invest in Flow! I am very disappointed in Marc Andreessen standing behind this guy. I don't trust you. These guys can't save the world if they can't save themselves. Thumbs down.

[@schumzy]

wow, you VC's really don't learn. I used to think you were the smart money. Also, I've learnt never trust a start-up that uses a common english word as it's name. And I've unsubscribed

[@alainportant6412]

GOd, what a thieving jew

[@MrChazz965]

Only a fool would get into business it’s this thief

[@aybee63]

This guy's story is really quite boring. All "me, me, me, me, me!"