Ep 5. Cult of WeWork

Generation Hustle is a true crime documentary series that chronicles the stories of ambitious and often misguided young entrepreneurs who ended up engaging in criminal activities. Each episode is a stand-alone story about a different scam, swindle, or hustle. In season 1, episode 5, titled "Cult of WeWork," the show dives into the dramatic story of the rise and fall of WeWork, the coworking space company that became a cultural phenomenon and ultimately a cautionary tale.

The episode starts by introducing viewers to Adam Neumann, WeWork's co-founder and CEO, who quickly becomes the central figure of the story. Neumann is portrayed as a charismatic and visionary leader who wanted to revolutionize the way people work, live, and even think. He envisioned WeWork as more than just a real estate company but a movement that would change the world. He believed that he was building a community of like-minded individuals who shared his values, and that his company was a reflection of his philosophical and spiritual beliefs.

The episode then takes a detour to explore Neumann's background and personality. We learn that he was born in Israel, raised in a kibbutz, and served as a member of the Israeli navy's elite unit before moving to the United States to pursue his entrepreneurial dreams. We also hear from some of his former colleagues, friends, and family members who describe him as a charming, persuasive, and often reckless person with a magnetic aura.

After setting the stage for Neumann's cult-like following, the episode shifts gears to WeWork's business model and financials. It explains how WeWork leased office spaces, renovated them, and transformed them into trendy and hip environments that could attract freelancers, startups, and established companies alike. It showcases some of the flagship WeWork locations, such as the WeWork Labs in New York City, and explains how they became more than just workplaces but social hubs and networking events.

Throughout this part of the episode, we also hear from some of WeWork's early investors, such as Rebekah Paltrow Neumann (Adam's wife) and venture capitalist Bruce Dunlevie, who describe the company as a sure bet and a unicorn in the making. They praise Neumann's vision, his ability to recruit top talent, and his knack for raising capital through an intricate web of subsidiaries and partnerships.

However, as the episode progresses, signs of WeWork's troubles start to surface. We hear from former employees who describe a toxic and cultish workplace culture, in which Neumann's whims and fancies took priority over sound business practices. We also see some of the cracks in WeWork's financials, such as its sky-high valuation, its mounting losses, and its dependence on Neumann's personal loans and contributions to keep the company afloat.

The episode then takes a turn for the dramatic when it covers WeWork's failed attempt to go public in late 2019. It explains how Neumann's eccentric behavior and questionable ethics came under intense scrutiny, how his inflated self-worth and self-dealing alienated investors and analysts, and how the once-celebrated unicorn became a poster child for corporate hubris and deception.

Throughout this part of the episode, we hear from key players in the drama, such as CNBC's Andrew Ross Sorkin, who broke the news of WeWork's troubles, and former SEC Chairman Jay Clayton, who oversaw the regulatory investigation into WeWork's IPO. We also see some of the fallout from WeWork's downfall, such as Neumann's ouster as CEO, SoftBank's bailout of the company, and the thousands of employees and investors who lost money and faith in the company.

Ultimately, "Cult of WeWork" is a cautionary tale about the dangers of blind ambition, unchecked power, and corporate hype. It shows how the cult of personality that Adam Neumann built around himself and his company obscured the reality of its flaws, risks, and limitations. It also demonstrates how the allure of quick riches, cutting-edge trends, and disruptive ideas can cloud one's judgment and ethics. By the end of the episode, viewers are left with a sense of both awe and unease about the world of tech startups and the people who run them.