Adam Neumann is an Israeli-American billionaire who co-founded WeWork, a company that subleases shared office space. Neumann has navigated a tumultuous journey from rising star to fallen titan in the corporate world.
However, Neumann’s rollercoaster career has seen his net worth fluctuate significantly. According to Bloomberg, Adam Neumann has a net worth of $2.2 billion as of 2023. His wealth is tied to a 11% stake in WeWork, various real estate investments, and his new venture, Flow, a residential real estate startup valued at over $1 billion​.
Neumann’s Early Life
Neumann was born on April 25, 1979, in Tel Aviv-Yafo, Israel and is of Ashkenazi Jewish descent. His parents were physicians but divorced when Adam was seven years old. Growing up, Adam lived with his mom along with his younger sister, Adi.
In 1986, the trio relocated to the US due to their mom’s medical residency. After four years in America, they returned to their homeland. Adam served in the navy for five years, rising to the rank of captain before being released. Later, he returned to the US to study at the Zicklin School of Business in New York City.
Early Career
Before starting WeWork, Neumann co-founded Krawlers, a children’s clothing company that failed. In 2008, he met Miguel McKelve through a mutual friend and the pair co-founded GreenDesk, an environmentally friendly co-working space in Brooklyn.
GreenDesk became the precursor to their future business plan. The pair sold the company in 2010 and used the capital to launch WeWork. They offered community areas for rent that are as low as $45 per month. Neumann stated that his goal with WeWork was to recreate the sense of community he had in Israel.
The Rise and Fall of WeWork
WeWork expanded rapidly and aggressively leased out buildings in New York. Softbank, JP Morgan Chase and Goldman Sachs were among the early investors. Softbank alone invested $10 billion as Masayoshi Son was a big believer in Neumann’s vision. However, the vision was mostly hot air and WeWork was suffering huge losses.
WeWork lost over $2 billion in 2018 but was still planning to go public the following year. Investors started to question the company’s management policies, business strategy and some of Neumann’s conflicts of interest. Adam appeared to be leasing properties he owned back to WeWork and made millions doing so.
Net Worth
In 2019, Neumann resigned as CEO of WeWork amid a failed attempt to go public, which significantly impacted the company’s valuation. WeWork, once valued at $47 billion, saw its value plummet to a fraction of its peak value. WeWork finally went public in 2022 through a SPAC deal with BowX.
Neumann received a $185 million payout and the right to sell $1 billion in stock after leaving. By 2023, WeWork shares are trading as low as $0.47, with a market cap of only $345.7 million. The company is struggling with significant debt and closed down 40 locations in 2022.
What is he doing now?
Since leaving WeWork, Neumann has remained out of the media spotlight and hasn’t given many public interviews. Currently, Adam is focusing his time on investing in new companies. Flow Carbon is one of his latest ventures, a business that sells carbon credits to companies looking to offset their emissions. He also has another real estate startup, Flow. The company has raised significant investment, including $350 million from Andreessen Horowitz.
Personal Life
Adam Neumann and his family reside in Greenwich Village, New York City. He has five kids with two pairs of twins with his wife, Rebekah Victoria Neumann. He married Rebekah in 2008 and the couple are still together.
