Tech Rundown: WeWork's Final Chapter (11)

Hello there,

Here’s today tech rundown — everything you need to know from the world of tech in 3 minutes!

In today’s email:

• WeWork’s inevitable bankruptcy

• Musk’s ambitious Cybertruck delivery targets

• $99 million for 3D metal printing

The Lead Story

It’s finally happening. After years of commercially circling the drain, WeWork is reportedly set to file for bankruptcy next week.

At its peak it was worth $47b; it closed yesterday at a value of $65m.

There are a number of memorable moments in the shared workspace’s infamous past. From the crazy summer parties, to its disastrous (first) IPO, to firing people because of bad vibes – the company was never short of scintillating tales.

But the numbers were as upsetting as the headlines: Despite making nearly $850m in recent quarters, they were still losing roughly a half-billion every 3 months. It simply wasn’t a viable business.

People often lump WeWork with the likes of Theranos or Nikola, which is unfair. The latter 2 startups were genuine fraud, and their founders are now reaping the consequences.

WeWork wasn’t fraud; just a traditional idea, with the veneer of a tech/innovative solution, and funding that got out of control. Frustrating but not fraud – and that difference is important.

There are several takeaways from the WeWork saga:

1. Growth is good, but a path to profitability is even better

2. Not all startups deserve tech valuations

3. Plan that things won’t be perfect. WeWork assumed growth would follow the happy path for its entire ride, however when unforeseen events came up (slower growth, a pandemic, higher interest rates) they were ill-prepared

4. Corporate controls cannot be overstated; the quicker a company grows, the more VCs/investors need to maintain a watchful and active eye. See: Uber, FTX

More Tech News

• Pinterest pop: Pinterest's Q3 earnings beat expectations, and its stock soared 14% as a result

• AI makes $$: Bootstrapped AI-image creator Midjourney reportedly hit $200m in ARR, proving there are real AI companies being built

• LinkedIn flex: Polarising workforce platform LinkedIn hit 1 billion members

• Tesla targets: Musk aims to make 200,000 Cybertrucks per year

• AI-seeing dog: NY researchers craft a robot dog for the visually impaired, helping reduce training costs

Startup Fundraising

• Ola Electric, an EV startup, raised $380m at a $5b valuation

• Seurat, a startup developing 3D metal printing technology, raised $99m in a Series C round

• Fantix, a startup that helps businesses build AI models without sharing data, raised $2m

• Auriga Space, a startup working on a new (electromagnetic) launch system, raised $5m

• Rebellions, an AI chipmaker, is in talks to raise $100m that would value the company at $500m

Daily Data

WeWork over the years

Global internet speeds are ramping up quickly

Distractions

Did this person win Halloween?

• A lookback at some internet artefacts

• Things that won’t end well for $100 million, Alex

Was this forwarded to you? Sign up here!