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Billion Dollar Loser

summary ofBillion Dollar LoserBook by Reeves Wiedeman

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You’ll learn

  • What sparks a billion-dollar idea
  • Why culture impacts business success
  • How resilience fuels founders
  • What lessons failures teach

first KEY POINT

The convergence of two outliers from seemingly parallel backgrounds

Adam Neumann was not born with the brash self-assurance he’s had since high school. He was the son of Avivit and Doron Neumann, two doctors who met while studying medicine at Ben-Gurion University. Doron went into ophthalmology, while Avivit became an oncologist. They married in 1978, and Avivit gave birth to Adam in the desert city of Beersheba a year later, when she was twenty-two.Avivit and Doron split two weeks before their tenth wedding anniversary, and Adam subsequently said their divorce marked the most difficult time of his life. As his mother dragged Adam and Adi, his younger sister, to various residences, he grew resentful of her. The three Neumanns moved to Indianapolis shortly after the couple divorced, where Avivit completed her medical residency. At an already challenging period, young Adam Neumann struggled to adapt to a new environment and a new country where he didn't speak the language (the American government even attempted striking the final ‘n’ from his family surname). Avivit described her son as “falling apart.”In 1990, the Neumanns returned to Israel after two years in Indiana to live in Nir Am, a tiny village a mile from the Gaza Strip, in a stony desert dotted with date palms and pomegranate bushes. Nir Am is a kibbutz, one of the visionary communities that first identified themselves via a blend of socialism and Zionism and had sprouted up in Israel during the previous decades to construct self-sustaining colonies throughout the country.Miguel McKelvey, like Neumann, grew up under unique circumstances. In the 1960s, his mother, Lucia, lived in Taos, New Mexico, when she and her three friends became mothers simultaneously. According to McKelvey, the fathers left one after the other, and the newly single moms formed a matriarchal collective. They lived apart while raising their children together and discovered ways to survive outside traditional social structures and expectations. McKelvey went on to the University of Oregon to study architecture, graduating with a 4.0 GPA.

Bringing people together seems thrilling and perhaps lucrative; after all, employees are increasingly seeking physical interaction in this digital age.

WeWork's co-founders' upbringing and life experiences served as crucial spurs in the company's development. Are you in charge of a firm or planning to launch one? You can learn from the highs and lows of the WeWork founders.

second KEY POINT

How the WeWork flames were ignited from the humble beginnings of Green Desk

McKelvey was in Brooklyn working for the architectural firm JPDA when he decided to take the subway to Tribeca. He was in town to see Gil Haklay, an Israeli architect who also worked at JPDA. McKelvey was followed into the elevator at Haklay's building by a man who made his presence known by his height, loudness of speech, and lack of a shirt and shoes. Even though it was a hot summer day in New York, this seemed odd. The strange man turned out to be Haklay’s roommate, Adam Neumann.Coincidentally, Neumann had started an infant clothing firm before meeting his prospective partner and had recently moved it from a warehouse to a shop at 68 Jay Street in Brooklyn in the same building where McKelvey's architecture practice was located. Neumann’s clothing business was ailing at the time; McKelvey also felt he was wasting away building another’s empire. Due to their mutual acquaintance, Haklay, and frequent interactions from working in the same building, Neumann and McKelvey started exchanging ideas. Before long, they decided to collaborate on a venture while Neumann continued struggling to keep the clothing firm afloat.The new firm was a niche replication of what McKelvey was doing at JPDA; they were looking at leasing out shared office spaces. Unfortunately, they had no properties of their own. While brainstorming on working around this bottleneck, Neumann remembered spotting unoccupied floors in the 68 Jay Street building and approached the landlord, Joshua Guttman. Neumann tabled the proposal of making just one of the vacant floors under renovation into an office suite company.Guttman first declined Neumann's proposition, but he persisted until the former agreed to show him another building that he had acquired nearby. When Guttman eventually approved, it came with a clause that proceeds from leasing out the spaces would be shared between himself and Neumann. Next, Guttman instructed him to submit a formal business strategy which inspired Neumann to track down McKelvey and inform him what had transpired.

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first KEY POINT

WeWork hit the ground running, and the founders grabbed every loose hand they could reach

second KEY POINT

Growth, revolution, religion, and the transformation of the WeWork landscape

third KEY POINT

The canker of Adam Neumann’s personality dysfunction and ego

fourth KEY POINT

As the WeWork rollercoaster went down the slide, Neumann was required to disembark

fifth KEY POINT

Conclusion

About the author

Reeves Wiedeman is a New York magazine journalist who digs deep into modern businesses. His narrative of WeWork’s tumultuous journey captures the essence of volatile startup environments and their broader implications.​

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Frequently asked questions

What is Billion Dollar Loser: The Epic Rise and Spectacular Fall of Adam Neumann and WeWork about?

Billion Dollar Loser dives into the rise and dramatic fall of Adam Neumann and his company WeWork, exploring themes of ambition, deception, and the consequences of unchecked power. The book offers an in-depth look at the startup culture and the financial mismanagement that led to WeWork's collapse.

What are the key takeaways from Billion Dollar Loser: The Epic Rise and Spectacular Fall of Adam Neumann and WeWork?

Key takeaways include the dangers of overvaluing charismatic leadership, the pitfalls of rapid expansion without a solid business model, and the impact of corporate culture on a company's fate. The book serves as a cautionary tale for investors and entrepreneurs alike.

Is Billion Dollar Loser: The Epic Rise and Spectacular Fall of Adam Neumann and WeWork worth reading?

Yes, Billion Dollar Loser is worth reading for anyone interested in business, entrepreneurship, and the dynamics of startup culture. It offers insightful lessons and a gripping narrative that highlights the complexities of modern business ventures.

How many pages is Billion Dollar Loser: The Epic Rise and Spectacular Fall of Adam Neumann and WeWork and when was it published?

Billion Dollar Loser has approximately 336 pages and was published on October 13, 2020. This allows for an in-depth exploration of the subject matter in a concise format.

Who is the author of Billion Dollar Loser: The Epic Rise and Spectacular Fall of Adam Neumann and WeWork?

The author of Billion Dollar Loser is Reeves Wiedeman, a journalist with extensive experience covering the business world. His investigative work adds depth and authority to the narrative of Adam Neumann's rise and fall.