Eight months after he was ousted from WeWork, the office-sharing company he founded and led, Adam Neumann is back, this time joining the shared-transportation industry.
The Israeli-American entrepreneur whose net worth is estimated at $450 million has invested $10 million in GoTo Global, an Israeli company that operates the shared-car services Car2Go as well as Autotel and the bicycle-sharing service Mobike. Neumann will hold a third of the shares in GoTo and can name a director to the board.
GoTo, a subsidiary of the Tel Aviv Stock Exchange-traded company Shagrir, was formed in 2008 and employs 160 people. It also operates in Malta, where if offers electric-bicycle and car-sharing services and car rentals. The company has plans to expand to an unnamed European city later this year.
CEO Gil Laser said Neumann’s investment would have a synergistic effect because of his experience and connections in the global shared economy. Laser said he believed that the coronavirus would be a boost to companies like GoTo, because as more people work from home they will be less in need of their own cars.
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“After the lockdown ended, our numbers were better than before the coronavirus,” he said. “May and June were strong months in Israel and Malta. People prefer electric scooters to buses and taxis because of social distancing.”
More recently, GoTo has developed an app that’s been employed in Malta that lets users access a range of services as a one-stop shop. In Israel, its services are still offered separately.
In addition to Neumann’s investment, Shagrir and other GoTo shareholders converted a $9 million loan to equity, bringing the company’s total fundraising to $19 million. The deal values GoTo at $30 million post-money. Shagrir now holds a 54.2% stake.