Andreessen Horowitz (a16z) has committed $350 million to WeWork founder Adam Neumann’s new startup Flow, which is scheduled to launch in 2023. According to reports, a16z invested the funds in the startup at a $1 billion valuation.
In a blog post, a16z outlined the premise for the company that is positioned to adapt to the virtual office environment or WFH (work from home) world that has rapidly evolved due to advances in technology and the realities of COVID.
“Many people will live in places far away from where they work, and many more will shift to a hybrid environment. As a result, they will experience much less, if any, of the in-office social bonding and friendships that local workers enjoy. For many of these people, increased screen time and reduced in-person interaction will cause challenges that are not just limited to work, such as alienation and loneliness. This is not a good path for anyone, and it needs to be addressed directly, right now.”
a16z adds that people are voting with their feet migrating away from traditional economic hubs to other locales or rural areas and “the residential real estate world needs to address these changing dynamics.”
While Neumann changed the concept of an office now he is taking this another step to offices anywhere while helping to maintain a sense of community. At least that is the vision.
“We are thrilled by the scope and aspiration of this project. It is not lacking in vision or ambition, but only projects with such lofty goals have a chance at changing the world,” says z16z.
And now, Flow and Neumann have $350 million to build out the dream.