ImpactAlpha, September 25 – The mega co-working company, which is valued at roughly $20 billion, is preparing to launch a fund to invest in social enterprises and startups focusing on “the future of work.” The fund will focus on tech startups in human resources, recruitment, training, education, and real estate, the Wall Street Journal reports.
WeWork operates shared office spaces in 29 countries worldwide. It generates revenue from office rentals to freelancers and small businesses, as well as larger companies who lease coworking space from WeWork to satisfy workers’ growing demands for flexibility. It’s existing model and expansion potential—already 47% of the millennial generation freelances—helped the company raise $700 million in debt and $1 billion through a convertible note with SoftBank this year.
The new fund, reportedly dubbed the Creator Fund, would be an additional way for WeWork to diversify its potential earnings. A target fund size has not been announced. It is expected to absorb WeWork’s current investments, made through its $20 million Creator Awards initiative, which gives WeWork an option to take future equity in any of the businesses its supported.