WeWork is Not a Silicon Valley Tech Startup

Note to Journalists:

Saw this today in Business Insider.

Business Insider thinks WeWork is the “tech world's most highly valued startup”.
And also, it's a “symbol of Silicon Valley's boundless audacity”.

WeWork is a 9-year old provider of co-working spaces (a.k.a. real estate) that has raised more than $15 billion in funding. It's headquarters are in New York.

It's primary investor, Softbank, is based out of Japan.

It is not a tech company. It has nothing to do with Silicon Valley. I know these words are shorthand for something, but that's lazy writing. Use the proper words.

Now maybe WeWork wanted to be a tech company. Maybe they wanted the 10X, 20X valuations reserved for Silicon Valley tech companies that usually sell things that have almost $0 incremental cost per customer.

But the truth is, they leased real estate from landlords and then subleased it to others. Every time they acquire 1000 new customers they need to buy a new building or lease a new floor from an existing one, do massive expensive renovations, and then serve that customer with things that cost real money.

Sorry. That's what they are, that's what they do. If WeWork is not exempt from the laws of economics, journalists should not be exempt from the laws of describing things accurately instead of trying to use a lazy shorthand.