Adam Neumann is back in the shared economy business with an investment in GoTo Global – ProWellTech
Adam Neumann, the controversial co-founder and former CEO of WeWork, acquired a 33% stake in GoTo Global, a shared mobility company operating in Israel and Malta and intends to expand in Europe later this year.
Neumann’s family office, 166 2nd Financial Services, invested $ 10 million in GoTo Global as part of a $ 19 million Series B round. As part of his investment, Neumann will be able to appoint a board member on his behalf. The current shareholder Shagrir Group Vehicle Services, an Israeli publicly traded company, also attended the round.
GoTo Global (also referred to as GoTo Mobility) is a mobility company as a service that aims to cover the full range of shared vehicles from cars and mopeds to bicycles and electric scooters. The company, founded in 2008 with a focus on car-sharing, previously raised $ 3 million in seed funding. He had also obtained a $ 9 million loan from Shagrir, which was converted into an equity investment.
The latter funding will be used to expand its shared services in Europe, starting from Madrid.
Since establishing 166 2nd Financial Services, Neumann has made about 15 investments in startups in Canada, Israel, the United Kingdom and the United States, including EquityBee, Moon Active and Peach Street.
However, this is Neumann’s first investment since filing a lawsuit against the Softbank Group for alleged breach of contract and breach of fiduciary duty for entering into a $ 3 billion public offering for WeWork shares. The SoftBank Group withdrew its $ 3 billion public offering for WeWork shares on April 1, citing the impact of COVID-19 on the business but also the unfulfilled closing conditions.
COVID-19, or more specifically changing consumer behavior due to the pandemic, is largely what drove Neumann’s investment in GoTo Global, according to a source familiar with the investment. Neumann isn’t speaking publicly because of the lawsuit.
Neumann made the investment because he believes that flexibility will be a key component in people’s lives after COVID-19, the source said.
GoTo Global is equally confident about its post-COVID future.
“Shared mobility, and transportation in general, has been one of the industries hard hit by the blockages of the economy since people had to isolate themselves,” said Gil Laser, GoTo Global CEO, in a statement announcing the relaunch. “But we are the ones who made the return faster, we went back to + 12% at the pre-block baseline. We understand that although shared transport may not seem the safest solution on the one hand, it is perceived as a safer option than public transport on the other and is certainly a much cheaper option than a car. “