The WeWork IPO - How it becomes a software company
How does WeWork reach sky high IPO pricing? By saying it’s a software company. Software companies are able to scale infinitely with minimal increase in investment. That’s what makes software IPO’s reach unicorn status. The problem with WeWork is the outside market sees it as a real estate company. WeWork itself is to blame for this due to its dealings in leases. Get out of the real estate business and suddenly you have a pure play software company with infinite scale opportunity. That’s what WeWork needs to do in order to get this IPO on track. Right now, it seems everyone at WeWork has forgotten why software companies are full blown unicorns with growth projections that meet valuations.
Here’s how WeWork fixes the issue - Get the hell out of signing leases. Focus on building a software platform and office space deployment process that anyone with empty office space can follow. WeWork needs to ultimately franchise the business. WeWork owns the engineering talent to organize office space to maximize happiness. WeWork should be the happiest and most productively designed office space in the world and have it scientifically proven. When you sign up as *franchise with WeWork you receive a full IT deployment by WeWork engineers. They swoop in and convert your space into a high tech easily manageable workspace. Wireless Internet management, Billing platform, Cost savings platform, Productivity management platform.
WeWork needs to focus on the software that helps produce efficient and successful companies. They need to get out of the real estate business. Real estate is not infinitely scalable. It can’t scale up as growth continues and it can’t scale downwards as the market tightens. Software solves all of these problems and the market is smart enough to recognize it now.