Former WeWork star Adam Neumann is getting into the real estate business with a $30 million investment in resident management app Alfred Club. And his Selina hotels & partners have teamed with Israeli E-scooter platform LEO.
It’s been a little over a year since Israeli born Adam Neumann was forced out of WeWork, the company which he founded in 2010. After a meteoric rise the entrepreneur was brought down after allegations of serious drug use and sexual improprieties were made.
WeWork was forced to deal with sexual harassment suits. It delayed its planned IPO and laid off many workers.
And Neumann reportedly walked away with a $1.7 billion deal. So he has plenty of money to pursue other ventures.
LEO is an electric scooter sharing service. Operated by Israel-based electric scooter brand Inokim.
LEO charges a flat fee for each ride and an additional fee per minute. LEO’s app-based service allows users to book scooters up to 15 minutes in advance and briefly put the scooter they are using on hold for a nominal fee.
Neumann is making the LEO investment through global hospitality brand Selina. The deal is for 40% of the company which has a $30 million valuation.
“In Selina, we realized that green and “open-air” transportation will replace traditional mobility options like busses, cars, trains. There are many reasons for this, but we know that many travelers, even more after this pandemic, have tighter budgets, and sometimes renting a car, is not an option. Also, in urban cities, people are less excited to use traditional transportation to get around. That’s why we decided to partner with LEO.”
“Electric scooters will be available to Selina’s guest in our lobbies, giving them access to a truly culturally authentic experience that empowers them to learn and evolve as they explore the world,” said Selina Co-Founder and CEO Rafael Museri.
As for Alfred Club, CNN reports that Adam Neumann invested the $30 million through his family investment office. Neumann led the company’s investment round which totaled $42 million.
“Adam has been impressed by what these two visionary founders have accomplished over the last six years as they work to transform apartment living. Adam is excited to support Marcela, Jess, and the rest of the Hello Alfred team as the company continues grow,” a spokesperson for Neumann said in a statement to CNN Business.
Alfred declares that it powers next‑generation apartment buildings, providing resident‑first software and services to deliver in‑home support and local experiences.
Alfred partners with property owners and managers to offer residents personalized hospitality services. This allows teams to operate buildings more effectively and efficiently while attracting and retaining residents. The Alfred platform integrates with Real Page, Yardi and Entrata to deliver an improved.
So this is kind of like what Adam Neumann said he saw as the vision for the future of WeWork. He wanted the office space sharing company to eventually provide all manner of services to tenants.
Alfred currently operates in more than 100,000 apartments across the US.
“This most recent raise provides us with the financing needed to grow in sync with the expanding in-home economy. We are grateful for the support of our investors, both existing and new, and the confidence they have placed in our strategy, platform, and vision,” said Alfred CEO and cofounder Marcela Sapone in a press release.