Investors pay for growth above all else. What matters to Wall Street is expected growth and future cash flows not current status, which explains why WeWork is valued at $47bn while IWG has a market cap of $3.7bn, according to Motley Fool. WeWork has doubled its sales every year while IWG has barely outgrown the global economy, but much of the difference between the two firms can be attributed to the perception of the experience offered by the brands. In other words, WeWork has dominant mindshare in its space: When you think of co-working companies, you think of WeWork, not IWG or any of its subsidiaries. The question now is, will this new wave of startups succeed in creating an ecosystem that attracts investors who are willing to put their money where their mouths are?
Investors pay for growth above all else. What matters to Wall Street is expected growth and future cash flows not current status, which explains why WeWork is valued at $47bn while IWG has a market cap of $3.7bn, according to Motley Fool. WeWork has doubled its sales every year while IWG has barely outgrown the global economy, but much of the difference between the two firms can be attributed to the perception of the experience offered by the brands. The question now is, will this new wave of startups succeed in creating an ecosystem that attracts investors who are willing to put their money where their mouths are?