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WeWork CEO Neumann’s $700 million cash-out says a lot about how the massive influx in venture capital has changed the market

Adam Neumann speaks onstage during WeWork Presents Second Annual Creator Global Finals at Microsoft Theater on January 9, 2019 in Los Angeles, California.

  • Traditionally, venture capitalists frowned on startup founders selling any of their personal stakes in their companies before the firms went public or were acquired.
  • But it’s becoming more common for founders to cash in some of their stakes pre-IPO.
  • WeWork CEO Adam Neumann, for example, has raised some $700 million over the last five years by selling off stakes in his company or using his stock to guarantee personal loans, The Wall Street Journal reported Thursday.
  • The change in attitude about such moves is related to the big influx in late-stage capital to the venture industry, investors and analysts said.
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    Source:: BusinessInsider.Com