Prof G Markets: Adam Neumann returns, cotton futures, and tax credits for EVs

Business Strategy

Scott Galloway examines the business model and strategy behind Adam Neumann's new venture, Flow, highlighting its potential to disrupt the real estate market. He notes that branding apartments on a national scale could mirror the success of WeWork's branded workspaces, though scaling such a real estate business presents significant challenges 1. Dror Poleg, an economic historian, suggests that Neumann aims to create a household brand in residential real estate, bypassing traditional brokers and property managers 2.

In a world where people can live anywhere, there's now more and more competition in terms of how do you attract them to come and live where you are.

--- Dror Poleg

Galloway also points out that Neumann's charismatic storytelling is a core competence in the unicorn economy, though he questions whether this will translate into a sustainable investment 1.

   

Investment Reaction

The investment by Andreessen Horowitz in Flow reflects a broader willingness to give second chances in business, despite past controversies surrounding Adam Neumann. Galloway acknowledges Neumann's talent for promotion and the potential for Flow to succeed, but he remains skeptical about the venture's ability to deliver venture-like returns 3. He draws parallels to Neumann's previous venture, WeLive, which failed after its IPO collapse, emphasizing the need for focus and innovation in the competitive real estate market 2.

You should never underestimate someone who overestimates themselves. Cause occasionally they're right.

--- Scott Galloway

Galloway also highlights the role of Masayoshi Son in the WeWork saga, suggesting that the real financial missteps were not solely Neumann's 2.