Why Did “We” Not Work?
LANGEVOORT.PRINTER.UPDATED (DO NOT DELETE) 7/18/2021 5:50 PM Corporate Adolescence: Why Did “We” Not Work? * Donald C. Langevoort and Hillary A. Sale In academic and public commentary, entrepreneurial finance is usually portrayed as a quintessential American success story, an institutional structure whereby expert venture capitalists with strong reputational incentives channel much-needed equity to deserving entrepreneurs, then subject them to intense monitoring to assure they stay on the path to hoped- for success in the form of an initial public offering or public company acquisition.1 Thus, it is jarring that in recent years there have been so many troubles, from gross embarrassments to allegations of outright criminality, at companies like Uber, Theranos, and our subject here, WeWork. These dramas are often portrayed in terms of the predictable sins of youthfulness: reckless, disruptive, risk-taking behaviors that come from the volatile interaction of a charismatic young leader and a cult(ure) of STEM-smart followers who buy into the dream.2 * The authors thank Craig Lewis, Sharon Nellis, and Elizabeth Pollman for their helpful comments and Olivia Brown, Samantha Glazer, Hollie Chenault, Claire Creighton, Jing Xu, and Michael Marcus for their research, insights, and good humor. 1. E.g., Bernard S. Black & Ronald J. Gilson, Venture Capital and the Structure of Capital Markets, 47 J. FIN. ECON. 243 (1998). 2. See generally JOHN CARREYROU, BAD BLOOD: SECRETS AND LIES IN A SILICON VALLEY STARTUP (2018) (discussing the Theranos scandal
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