How Venture Capitalists Are Deforming Capitalism
Even the worst-run startup can beat competitors if investors prop it up. The V.C. firm Benchmark helped enable WeWork to make one wild mistake after another—hoping that its gamble would pay off before disaster struck.
via The New Yorker: https://www.newyorker.com/magazine/2020/11/30/how-venture-capitalists-are-deforming-capitalism
However, as reports of WeWork’s oddities began appearing in the media, board members who once had been willing to publicly defend Neumann started declining interview requests. In early 2019, when the Wall Street Journal was poised to report that Neumann had been personally buying buildings and then leasing them to WeWork—a form of self-dealing that would have been grounds for censure at almost any other firm—company executives pleaded with board members to defend Neumann in the press. All of them refused. “They were embarrassed,” a WeWork executive recalled. “They were a Vichy board, and there was obviously this tension between, like, upholding good corporate governance and frankly just saying, ‘I don’t give a fuck, because my investment is getting better every day, and so it doesn’t really matter what Adam does as long as I can get my money out at some point.’ ”