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Renters, meet your new landlord: A Silicon Valley venture capital firm.
Andreessen Horowitz, to be specific.
After the firm — also known as a16z — wrote its biggest-ever check to help get a new apartment startup off the ground, the firm received a share in thousands of units across the country, The Wall Street Journal reported on Tuesday.
A16Z wrote a $350 million check to Flow, a mysterious housing company founded by Adam Neumann, who is best known for his status as a co-founder and former chief executive officer of the coworking behemoth WeWork.
In exchange, Neumann handed over part of his real estate holdings, which reportedly total more than 4,000, WSJ reported, citing people familiar with the matter.
“By investing in Flow, Andreessen Horowitz also acquired stakes in the buildings,” WSJ reported. “For a venture-capital firm to receive in effect a stake in thousands of apartments in return for an investment is very rare, in part because there are so few venture-funded firms that own real estate.”
A16Z has invested in other ventures that typically have to do with applying technology to the real estate transaction process. It is well known for its status as an early investor in Facebook and Airbnb.
This is the first time it has received shares in housing stock itself as part of an investment.
Neumann is known for his status as a charismatic CEO of WeWork during its meteoric rise and eventual fall before the company went public. Neumann walked away with about $1 billion when he left in 2019.
He remained in the shadows before news emerged earlier this year that he had amassed apartment buildings across the country.
Details on Neumann’s exact plans for Flow aren’t yet clear.
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