Adam Neumann invests $10m in GoToGlobal

Adam Neumann

Transport sharing company GoToGlobal operates the Car2Go service in Israel and plans expansion in Europe.

WeWork founder Adam Neumann, a prominent player in the shared economy sector, has invested $10 million in Car2Go (now known as GoToGlobal). Neumann will receive one third of the shares in the Israeli company at a valuation of $30 million after money. The connection with Neumann came about via the chairman of Car2Go, through their philanthropic activity.

Car2Go is a subsidiary of roadside assistance company Shagrir, which will hold 54% of the company following the allocation of shares to Neumann. Shagrir and other shareholders also converted a $9 million loan to equity, so that Car2Go puts the amount of the round at $19 million. A representative of Neumann will sit on the company's board of directors.

GoToGlobal is the company behind the car sharing service Car2Go, the Tel Aviv car sharing scheme AutoTel, and services in other cities in Israel. It was founded in 2008 and now operates in twelve cities in Israel and in Malta. It is managed by Gil Laser, who told "Globes" that the company's uniqueness lay in its intention of providing customers with five services under one app - long- and short-range car hire, and hire of motorcycles, bicycles, and electric scooters. All the services are provided by the company itself, meaning that it will compete with many other companies. GoToGlobal employs 160 people, about 25 of them in research and development.

In 2019, GoToGlobal had revenue of $13 million. Its revenue has grown by an average of 35% annually in the past five years. Last year, it lost $2.5 million. Laser says that the company plans to expand in Europe to "a very competitive city", but declines to name it.

Neumann founded shared workspace company WeWork in 2008. He led it to a $47 billion valuation, but was ousted as CEO last year when an attempt at an IPO failed. The company obtained a valuation of $10-15 billion for the purposes of an IPO, and decided to remain privately held.

Published by Globes, Israel business news - en.globes.co.il - on July 15, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Adam Neumann
Adam Neumann
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