If you’ve been following the news lately, you probably know that WeWork – also known as the We Company – has been gearing up for a big IPO this year. Or at least it was.
As of this morning, it seems like the We Company is shelving its plans to go public. Investors and analysts have expressed some level of apprehension about WeWork’s business model from the very beginning. Lately, though, the criticism has ramped up to new levels.
As you can imagine, this is pretty bad news for the We Company and its VC-level investors – some of whom got in on this deal back when WeWork’s valuation was more than double what it could be now.
You might be wondering where that leaves the We Company’s angel investors.
The answer is that most of them are still doing just fine. See, WeWork’s seed round happened in 2011 – and it was valued at just $1 million at the time.
So, even if this startup’s saga ends in a $20 billion valuation – less than half of what it was when Softbank and others invested almost $1 billion earlier this year – the We Company’s angels will still come out with a 20,000X return.
Getting in early, when companies still have low valuations, is the absolute greatest advantage to being an angel investor. So why don’t more people do it?
Maybe it’s because finding the right deals is a tough endeavor. There are so many deals out there… and just a few have what it really takes to produce amazing returns.
That’s why I created the Angels & Entrepreneurs Network. It’s an online platform that’s part investing group, part social network, and part comprehensive educational resource. And its sole mission is to present its members with the best startup investment recommendations out there.
There’s really nothing else like it. Just click here to become a founding member of the Angels & Entrepreneurs Network.
And stick around… I’ll be back on Thursday to teach you exactly how to avoid a common mistake most angel investors make.
Until next time,