Table of Contents Summary of Cash Flows Comparison of the Six Months Ended June 30, 2018 and the Six Months Ended June 30, 2019 A summary of our cash flows from operating, investing and financing activities for the six months ended June 30, 2018 and 2019 is presented in the following table: Six Months Ended June 30, Change (Amounts in thousands, except percentages) 2018 2019 $ % Cash provided by (used in): Operating activities $ (84,363) $ (198,711) $ (114,348) 136% (1) Investing activities (888,173) (2,362,773) (1,474,600) 166% (1) Financing activities 745,794 3,430,258 2,684,464 360% Effects of exchange rate changes 2,726 15,956 13,230 485% Net increase (decrease) in cash, cash equivalents and restricted cash (224,016) 884,730 1,108,746 N/M Cash, cash equivalents, and restricted cash—Beginning of period 2,171,119 2,163,942 (7,177) N/M Cash, cash equivalents, and restricted cash—End of period $ 1,947,103 $ 3,048,672 $ 1,101,569 57% N/M = Not meaningful (1) Investing activities and financing activities during the six months ended June 30, 2019 included $(870.6) million in cash outflows and $852.1 million in cash inflows, respectively, relating to the acquisition, development and related financing of the real estate acquired by the 424 Fifth Venture. Operating Cash Flows Net cash provided by (used in) operating activities consists primarily of the revenue we generate from our members and the tenant improvement allowances we receive offset by rent, real estate taxes, common area maintenance and other operating costs. In addition, uses of cash from operating activities consist of employee compensation and benefits, professional fees, advertising, office supplies, warehousing, utilities, cleaning, consumables, and ongoing repairs and maintenance related payments as well as member referral fees, payments we make and reimbursements for our strategic events including the WeWork Creator Awards program and various other costs of running our business. The $114.3 million increase in net cash used in operating activities in the six months ended June 30, 2019 relative to the six months ended June 30, 2018 was primarily attributable to net cash used for investments in the growth of our global platform. Included in our cash flows from operating activities was $80.0 million of cash used in operating activities of consolidated VIEs for the six months ended June 30, 2019, compared to $42.5 million of cash used in operating activities for the six months ended June 30, 2018. This increase in cash used in operating activities is also generally related to the growth of our global platform. Investing Cash Flows Cash used in investing activities increased by $1.5 billion to $2.4 billion for the six months ended June 30, 2019. Net cash used in investing activities is primarily used to support the growth of our global platform, including funding additional purchases of property and equipment, primarily relating to leasehold improvements at our leased locations, which increased by $565.5 million, and the funding of security deposits with landlords for new locations, which increased by $31.6 million. Our cash used in investing activities also includes a $17.1 million increase in cash used for strategic investments (net of proceeds from sales and redemptions) and an increase of $838.9 million in cash used for acquisitions, primarily due to the acquisition of certain property in New York City by the 424 Fifth Venture in the six months ended June 30, 2019. The remaining $21.5 million increase in net cash used in investing activities includes an increase in cash inflows of $9.0 million relating to the sale of software licenses during 2018 that did not occur in 2019, an increase in cash 119