SoftBank is being linked with an investment that could value WeWork at more than $20 billion. CNBC reported that the Japanese telco giant is gearing up to..<\/b>
SoftBank is being linked with an investment that could value WeWork at more than $20 billion.
CNBC reported that the Japanese telco giant is gearing up to make an initial investment of $2 billion into WeWork, with a view to putting nearly $1 billion more into the firm. The publication said the secondary investment could reach $2 billion, which would put SoftBank\u2019s total input at $4 billion overall.
So far to date, the seven-year-old company has raised $1.4 billion from investors.
A source close to WeWork confirmed that it\u2019s in talks with SoftBank over an investment per the report. However, the person added that the Japanese had also held discussions with a view to participating in its $150 million Series C (2013) and $355 million Series D (2014) rounds, deals that it was ultimately not a part of. This time around a deal seems more probable, but it isn\u2019t final. One issue that is holding things up is that SoftBank\u2019s Vision fund is still seeking commitments from investors, and in particular prospective LPs in the Middle East, our source added.
A $20 billion valuation would represent a slight jump on the $17 billion valuation that WeWork earned when it raised its $430 million Series F round last March. Last year\u2019s capital raise was led by two prominent VC firms in China \u2014 Hony Capital and Legend Holdings \u2014 and marked WeWork\u2019s first push into China, and Asia. Later that month, the firm announced plans for its first co-working spaces in Shanghai and Hong Kong. WeWork has broadly said it intends to be present in major cities across Asia but it declined to give more specific expectations. Bagging this mega round from SoftBank could be the catalyst it needs to make good on those regional ambitious and extend its strong presence in the West to the East.<\/p>\n