WeWork's IPO collapses, deflating a startup darling

The planned public offering of WeWork, the office-space company that had been one of the most highly valued startups in the world, collapsed this year, a dramatic reversal that deflated a celebrated startup, cost its founder his leadership, and became a cautionary tale about inflated valuations, governance and the excesses of the startup boom.

WeWork had grown rapidly by leasing office space, renovating it and subletting it to businesses and individuals, and it had attracted enormous investment at a soaring valuation, presenting itself as a transformative technology company rather than a real-estate business.

As the company prepared to go public, however, scrutiny of its financial disclosures revealed mounting losses, questionable governance practices, and concerns about its business model and its leadership, prompting investors to balk and the valuation to collapse.

The offering was shelved, the founder stepped down from his leadership role, and the company's value was slashed dramatically, requiring a rescue by its largest investor and sweeping changes to its operations, a stunning fall from its earlier heights.

The episode became emblematic of the excesses of the startup era, in which companies had attracted vast sums at lofty valuations on the strength of growth and vision, sometimes with little path to profitability and weak governance, raising questions about the sustainability of the model.

The collapse of the WeWork offering served as a cautionary tale and a moment of reckoning for the startup world and its investors, prompting greater scrutiny of valuations, business models and governance. It underscored the risks of the exuberance that had characterised the startup boom and marked a notable episode in the business history of the era, a vivid illustration of the gap that could open between hype and reality in the world of high-flying startups.