Update 3/31/17: SoftBank has invested $300 million in WeWork. The firm is expected to invest at least two more chunks of funding, totaling around $3 billion.

WeWork, the New York City-based co-working business, could soon be worth more than Snap Inc.

Japanese investment firm SoftBank is reportedly closing in on a nearly $4 billion investment in WeWork, CNBC reported on Monday. The investment would come as a primary $2 billion round, followed by a subsequent round of up to $2 billion, and could value WeWork at as much as $20 billion.

The news comes just days ahead of Snap's hotly-anticipated public offering, which is expected to revive the U.S. tech IPO market. The social-media startup-turned-ad behemoth is targeting a market cap of nearly $18 billion, according to several reports, and will begin trading on the NYSE on Thursday.

WeWork, which began as a simple co-working space for artists, entrepreneurs, and freelancers, has rapidly expanded to more than 150 locations in 15 countries worldwide. Last year, the business raised $690 million at a valuation of nearly $17 billion. It charges members a subscription fee.

"At WeWork, we are committed to creating a world where people can do what they love, where they can create a life's work and not just a living," said Adam Neumann, WeWork's co-founder and CEO, speaking at an event in Manhattan last year.

A representative for WeWork declined to comment or confirm the terms of the deal. SoftBank did not immediately respond to Inc.'s request for comment.

WeWork will likely be using new funds to continue its international expansion. Just last week, the company's co-founder and CCO, Miguel McKelvey, announced that it plans to launch in Beijing in May, adding that WeWork would continue to raise capital ahead of an expected public offering. (Nasdaq recently speculated that the company would be among the first to go public in 2017.)

SoftBank seems to be making good on a promise to increase its investment in the U.S. market. Late last year, the firm's chief executive, Masayoshi Son, told then President-elect Donald Trump that SoftBank would invest $50 billion in the U.S. and create 50,000 new jobs. He added that the company would focus on "the new startup companies in the United States." In addition to investments in businesses including Sprint and Alibaba, SoftBank last year injected $1 billion into Social Finance Inc., the San Francisco loan refinancing startup.

Published on: Feb 27, 2017