If you’ve been following the news lately, you probably know that WeWork – also known as the We Company – has been gearing up for a big IPO this year. Or at least it was.

As of this morning, it seems like the We Company is shelving its plans to go public. Investors and analysts have expressed some level of apprehension about WeWork’s business model from the very beginning. Lately, though, the criticism has ramped up to new levels.

As you can imagine, this is pretty bad news for the We Company and its VC-level investors – some of whom got in on this deal back when WeWork’s valuation was more than double what it could be now.

You might be wondering where that leaves the We Company’s angel investors.

The answer is that most of them are still doing just fine. See, WeWork’s seed round happened in 2011 – and it was valued at just $1 million at the time.

So, even if this startup’s saga ends in a $20 billion valuation – less than half of what it was when Softbank and others invested almost $1 billion earlier this year – the We Company’s angels will still come out with a 20,000X return.

Getting in early, when companies still have low valuations, is the absolute greatest advantage to being an angel investor. So why don’t more people do it?

Maybe it’s because finding the right deals is a tough endeavor. There are so many deals out there… and just a few have what it really takes to produce amazing returns.

That’s why I created the Angels & Entrepreneurs Network. It’s an online platform that’s part investing group, part social network, and part comprehensive educational resource. And its sole mission is to present its members with the best startup investment recommendations out there.

There’s really nothing else like it. Just click here to become a founding member of the Angels & Entrepreneurs Network.

And stick around… I’ll be back on Thursday to teach you exactly how to avoid a common mistake most angel investors make.

Until next time,

Neil Patel

Comments

14 responses to “What WeWork’s Changing Exit Strategy Means for Angel Investors”

  1. How do I learn more this company and understand how it works, such as the business model, and how Angel investor with your company is the best route?
    What are some references and experiences that I can review to understand better?
    Thank you for your response.

  2. When is the next seminar expected to be? I do vacations in the winter and would like to be sure to arrange my vacation around it so as to not miss it? Thanks.

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  4. I read the several advertisements a few different times, as well as Roberts video. I follow through with the contact and it’s always much more money & membership fees, reports etc. I have never been big on the stock market, and now at 65, my spouse
    71 struggle to make it on SS & a carpet cleaning business! Only want to risk $100 per month.

  5. I’m interested but like stated previously, to get bombarded with overwhelming material, $$, I don’t want it to all consuming. Want to understand more clearly.

  6. I am going through a tough divorce and will walk away with nothing! I need to get started with the right companies to secure future financial well being again. What I find unfortunate here is that deals that fall under areas of interest are locked away for the VIP members. Unfortunately I can only spare $100 or two a month but, cannot afford the VIP deals, which are the ones with great potential returns.

  7. I am trying to figure out how this works. I don’t see any true guides of a path that I should be following. Is there someone I can speak with. All I see so far is a bunch of short clips. Help please.

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