Wework China flagship community: 696 Weihai Road, Shanghai
Original title: Wework China gets 200 million US dollars financing
Reporter: Chen Weicheng
On September 24, Wework announced that Wework China had received an additional investment of US $200 million from Zhixin capital. Jiang Yueping, the partner of Zhixin capital operation, was appointed the acting CEO of Wework China, marking the full localization of Wework China.
Through this round of additional investment, Zhixin capital has become the controlling shareholder of Wework China and will continue to invest for a long time. At the same time, it will continue to give strong support to Wework China in terms of brand, technology and transnational strategic resources.
Under the epidemic situation, shared office has entered a new stage. Wework China has accelerated its localized operation. Youke workshop plans to land on NASDAQ in SPAC mode, and krypton space pursues stable operation. Sharing office needs fine operation, and service needs intelligence and diversification.
Wework realizes full localization operation in China
On September 24, Wework announced that Wework China had received an additional investment of US $200 million from Zhixin capital. According to Wework, since 2018, Zhixin capital has played a crucial role in the development of the company in the local market. This new investment marks the full localization of Wework in China.
At the same time, Wework China announced that Jiang Yueping, partner of Zhixin capital operation, was appointed the acting CEO of the company. Jiang Yueping once served as senior vice president of meituan reviews, and has led new retail, user platform and other businesses. Prior to the merger of meituan and Volkswagen review, he served as vice president of products and operations of Volkswagen reviews in 2010 and Chief Strategic Officer of Volkswagen reviews in 2014. Before joining the review, Jiang Yueping had more than 15 years of engineering, product and management experience in Tencent, Yahoo, kana and other software and Internet companies.
Since its entry into China in 2016, Wework has established more than 100 communities in 12 cities including Shanghai, Hong Kong and Beijing, providing office solutions for more than 65000 members. According to Wework, a new round of investment will help Wework China continue to support the sustainable development of local entrepreneurial enterprises, medium-sized enterprises and large companies.
Sandeep mathrani, Wework’s global chief executive, said: “with the increasing demand for office flexibility around the world, Wework’s brand proposition and business development potential are becoming increasingly clear. A new round of investment indicates a good development prospect for the company in the future; we have also found Zhixin capital as the best partner for Wework China to open a new chapter. ”
On the investment, Jiang Yueping said: “it marks that Wework China has fully realized the localization of decision-making and management, products and business, operation and efficiency, and has officially become a Chinese enterprise with global brand advantages and strategic resources from a Chinese subsidiary of a multinational enterprise.”
There are precedents for American enterprises to operate locally in China. In 2012, Evernote, a Silicon Valley company with software services, entered China and released a Chinese version of its product impression notes. In June 2018, impression notes announced the completion of restructuring. As Evernote has been independently operating in China for nearly six years, impression notes has become a Sino US joint venture independent operating entity controlled by China, and has obtained the first round of investment of hundreds of millions of yuan by Sequoia broadband cross-border digital industry fund.
Sharing office needs refined operation
Founded in 2010, Wework is a pioneer in the shared office industry. In 2014, Pan Shiyi, chairman of SOHO China, decided to introduce the concept of shared office into China after visiting Wework in the United States, and then launched SOHO 3Q. Since then, Youke workshop, krypton space and other domestic enterprises have come out one after another.
After the office shuffle in 2018, the tide of sharing has entered. At that time, Youke workshop believed that the industry had entered the “integration stage”, and shared office had entered the “giant” era. Since then, Youke workshop has accelerated the speed of M & A. in the same year, it completed the merger and acquisition of Hongtai innovation space, unbounded space and working DOM, and signed merger and acquisition documents with aIter maker and fangtang town.
Since the second half of 2019, there has been a wave of listing of shared office enterprises. In August of that year, Wework submitted a prospectus to the securities and Exchange Commission (SEC) to raise $1 billion. This news has been quiet for a long time the shared office industry to give a shot in the arm. However, a basin of cold water soon poured down. On September 30 local time, Wework announced that it would withdraw its prospectus and postpone its IPO plan.
In December 2019, Youke workshop filed a registration statement with the securities and Exchange Commission (SEC). However, on August 6 this year, Youke workshop withdrew the application. In view of the current capital market conditions, the company is considering alternative options and has decided not to offer or sell the securities it intends to issue at this time, the company said. At the same time, Youke workshop plans to land on NASDAQ in SPAC mode.
In October last year, Liu Chengcheng, the founder and chairman of krypton space, told shell finance reporter of Beijing news that there are two kinds of situations in going public. One is that the company’s valuation is indeed relatively high. Although it may still be losing money, it tells a story that it can grow multiple times in the future. It needs to continue to raise funds and support it with a broader future prospect, otherwise investors will definitely not continue to invest. “I understand that Wework and Youke workshop may belong to this kind of situation.”
“The other is a more stable approach. Listing with revenue and profit is less of a story. Of course, the revenue and profit will also increase in the future.” “If the market is particularly good, I think enterprises want to use the first way, but in the current market situation, we should be prepared for the second.”
With the outbreak of the epidemic, shared office opportunities and challenges coexist. Industry insiders believe that shared office will attract more and more mature enterprises by virtue of its flexible attribute. At present, domestic shared office enterprises mainly include Wework, Youke workshop, krypton space, etc. in the era of refined operation, shared office needs to continuously upgrade its intelligence and expand its service scope.