5 things you should know about tech today

The We Company, aka WeWork, announced overnight that it will withdraw its US initial public offering prospectus, ending what just a few weeks ago was touted as a US$47 billion float.

The attempt to go public has cost CEO Adam Neumann his job, along with several execs close to the co-founder, including his wife Rebekah. Meanwhile, chief investor SoftBank is doing its best to not suffer a massive haircut on the US$10+ billion they’ve ploughed into the co-working space venture for a 30% stake that could be worth less than $5 billion.

The end of the IPO also creates a new problem for WeWork, which had plans to borrow $US6 billion from banks on the condition that the float injected $US3 billion into the business.

While this part of the adventure ends, the fun part is only just beginning for a new management team dealing with $US47bn in lease payments due over the next 15 years, revenue commitments of just $4bn, and annual losses in excess of $1.6bn.

Why does it matter here? Because WeWork operates 20 sites in Australia, half of them in Sydney. Watch this (coworking) space.

2. Stackla’s Facebook lockout has cost former All Blacks captain David Kirk $12 million.

Kirk, the former Fairfax boss who nowadays runs ASX-listed VC fund Bailador Technology Investments Ltd (ASX:BTI), revealed late last week that Stackla’s US legal action seeking a temporary restraining order (TRO) against Facebook and Instagram blocking their access to data was denied by the District Court in California.

Stackla is an AI-powered user-generated content marketing platform, harnessing content from fans and users of businesses, from sports to retail.

The judge said Stackla could file a motion for a preliminary injunction and suggested the parties meet commercially to
resolve the issue.

“As a result of the above court ruling, and Stackla continuing to have no access to the Facebook and Instagram platforms for the time being, Bailador has made the decision to write-down the value of its investment in Stackla to $nil,” the VC firm said in a statement to the ASX.

Bailador’s minority stake in Stackla was worth $12.6 million.

“Bailador remains supportive of Stackla, its management team and employees, and we hope for a positive resolution to this matter as soon as practicable,” Bailador said.

3. Early-stage VC fund Investible has a new $22 million toy.

The Sydney-based fund set out to raise $20 million for its first venture capital fund, and landed $22m. The fund plans to make around 15 new investments a year and has already made 12. Its first investment, Peter Manettas Seafood, completed a subsequent raise at a valuation five times the initial raise.

The fund will focus primarily on Australian startups, but has already made bets in the US, Canada, Israel and NZ, including Dexibit, a data analytics solution for visitor attractions, big data-powered travel platformHotelmize, and diversity-focused  jobs network WORK180.  It runs in parallel to the invitation-only network of sophisticated angel investors, Club Investible.