Wework said this Tuesday that Softbank Group, its largest investor, has committed $3 billion to the shared-office company, valuing it at about $45 billion. At the same day, Wework's Chinese counterpart Ucommune, announced a $200 million D round fundraising valued at $3 billion.
According to a news report of the Wall Street Journal, Wework said this Tuesday that Softbank Group, its largest investor, has committed $3 billion to the shared-office company, valuing it at about $45 billion. At the same day, Wework's Chinese counterpart Ucommune, announced a $200 million D round fundraising valued at $3 billion.
Share-office is a cash-heavy business. since Wework was founded in 2010, it has raised more than $6.5 billion from investors and banks, but only $2.8 billion was left at the end of last month. Ucommune, with more than 200 sites, most located in mainland China, has secured about $650 million from private VCs and real estate agents.
Wework has nearly 500 sites worldwide, its first Chinese site opened in ShangHai in July 2016, now Wework in Chia has more than 60 sites, and expects to reach 80 at the end of this year. Wework China became an independent company in July 2017, Wework is just one of its shareholders, the local management team has more decision-making power.
MAO DaQing, the founder of Ucommune, once worked as a senior vice president in Vanke, one of China's largest residential real estate developers. Mao Daqing's widespread business connections give Ucommune a big advantage to negotiate good sites at better prices.
Office-share in China is still in its early stage, most sites concentrated in biggest cities such as ShangHai, BeiJing, ShenZhen, HongKong. Money-losing players like Wework China and Ucommune are not going to see their IPOs soon yet.