VALUE CREATION

REVIEW
Prepared by Ali Reese

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INTO THE Introduction + Purpose of Review | Pg. 3

FUNHOUSE: Who (Or What) Is Meow Wolf? | Pg. 4

TABLE OF Meow Wolf’s Value Creation Process | Pg. 5

CONTENTS Realization of Resources | Pgs. 6 - 8

Stakeholders & Accountability | Pgs. 9 -10

Risks + Externalities | Pg. 11

Towards the Future: Recommendations for

Improving Value Creation | Pgs. 12 - 13

References | Pg. 14

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INTRODUCTION + PURPOSE OF REVIEW
The subject of this value creation review is The purpose of this review has three primary
Meow Wolf, a privately held corporation based components: first, to analyze how Meow Wolf
in Santa Fe, New Mexico. In conducting this creates value by examining its overall value
review, the following available reports were creation process and how it realizes resources
used as the core basis of analysis: of financial/manufactured capital; natural
capital; human capital; relationship capital;
● WeFunder 2017 Report and symbolic capital, which includes both its
● 2017 B Corp Impact Report intellectual and reputational capital.

The WeFunder 2017 Report referenced U.S. Secondly, this review aims to identify the
generally accepted accounting principles stakeholders with which Meow Wolf partners
(GAAP), however no assurance provider was in order to create value, and the processes of
listed for its 2017 financial statements. accountability present in those partnerships,
as well as the risks and externalities identified
The 2017 B Corp Impact Report reflects in the aforementioned reports.
implicitly the standards of B Lab, a B
Corporation Certification provider. The third and final purpose of this review is to
outline recommendations for improving Meow
According to B Lab, the process required for Wolf’s future value creation processes and
certification includes completion of a B Impact resource management as well as its reporting
Assessment of organizational interaction with methods and the way in which it
customers, employees, the community, and communicates value to stakeholders; the basis
environment; adherence to specific legal used for these recommendations is the
requirements*; and provision of supporting International Integrated Reporting Council’s
documentation. Integrated Reporting Framework.

* Specifically, “Certified B Corporations are legally Note: unless otherwise indicated, all timelines,
required to consider the impact of their decisions graphics and charts have been prepared
on all their stakeholders. B Corps make this legal exclusively for this value creation review by
change by updating their articles of incorporation, the author and in accordance with Meow Wolf
reincorporating as benefit companies, or making brand standards.
other structural changes.”1

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WHO (OR WHAT) IS MEOW WOLF?

House of Eternal Return

Meow Wolf is a burgeoning arts and entertainment 2008 Meow Wolf Forms
organization that was established in 2008 as a Founded as a DIY art collective in Santa Fe,
community art collective specializing in large-scale, New Mexico

immersive art experiences. Backed by investor 2016 House of Eternal Return Opens
George R.R. Martin, Meow Wolf opened their first First permanent installation, a 20,000 SF
permanent installation, House of Eternal Return, in art experience in a renovated bowling alley
Santa Fe, New Mexico in 2016. House of Eternal Kaleidoscape Opens
2019
Return has yielded incredible success with over 1 Artist-driven dark ride opens in Elitch
million visitors since opening; $9.2+ million in Gardens Theme and Water Park in Denver
revenue reported in 2017; an increase in size to 289
2019 Future Expansions
employees; and permanent Meow Wolf expansions
to Announcements have been made for future
planned into four new markets over the next five 2024 permanent projects in Denver; Las Vegas;
years. As a certified B Corporation and registered Washington, D.C.; and Phoenix
Delaware Public Benefit Corporation, Meow Wolf
describes itself as a company dedicated to the triple
bottom line of people, planet, and profit.

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MEOW WOLF’S VALUE CREATION
PROCESS at a living wage; partnering with local schools
for art-based programs; and contributing to
fellow art collectives and DIY communities.
What value is Meow Wolf providing, and to These processes create two-way value
whom and how? In its WeFunder 2017 Report, generation, as they simultaneously contribute
Meow Wolf describes the immersive to Meow Wolf’s revenue stream and
entertainment experiences it creates as “a reputational growth while creating value for
combination of interactive art exhibition, the community and key partners.
playground, mystery novel, and escape room”2
that is intended for audiences of all ages. The business canvas model below - modified
Beyond the affective and experiential value here for purposes of space - outlines how
provided to its immediate customer base, Meow Wolf’s core value proposition and
Meow Wolf’s 2017 B Corp Impact Report also revenue streams are realized through the
explores how it creates value on both the local combination of its key activities; resources;
and national levels by employing local artists customers; and partners.

ACTIVITIES RESOURCES
VALUE PROPOSITION
● Hiring and Cultivation of ● Land and Buildings
Local Artists ● Fabrication Materials Immersive, transportive
● Design and Marketing of ● Artists and Employees entertainment experiences that
Installations ● Vendors and Entertainers draw on the combined creativity,
● Technology imagination, and technical talents
● Planning, Marketing and
● Copyrights of artists across a variety of
Execution of Events
● Community Collaboration disciplines and that are designed to
serve the communities to which
they belong
CUSTOMERS PARTNERS
● Local Artists/Art Community REVENUE STREAMS
● Tourists; families; young
adults; regular adults; ● Local Schools
seniors ● National Art Collectives and ● Admissions
● Engaged through on-site DIY Communities ● Merchandising
installations; events; ● Crowdfunding Investors ● Food & Beverage
social media; and media ● Local and National Media ● Design Contracts
productions ● Traveling Exhibitions

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 REALIZATION OF RESOURCES
The next section of this review seeks to analyze further how Meow Wolf both creates and
communicates value through the resources, or capitals, realized in both its WeFunder 2017 Report
and its 2017 B Corp Impact Report. The capitals below are drawn in part from the International
Integrated Reporting Council’s Integrated Reporting Framework. A diagram also follows on Page 8
illustrating how the starting input of Meow Wolf’s capitals yielded, through organizational
processes, these capital outputs; this value creation process can be considered cyclical, as current
capital outputs will contribute to future capital formation.

FINANCIAL/MANUFACTURED
NATURAL CAPITAL HUMAN CAPITAL
CAPITAL

Financial reporting in the WeFunder Both the WeFunder 2017 Report The WeFunder 2017 Report
2017 Report spanned across multiple and 2017 B Corp Impact Report briefly referenced employee
years, with financial statements from emphasized responsible growth to 289 employees as well
2015 - 2016 included alongside those environmental initiatives and as positive company cohesion and
of 2017, and projections briefly communicated specific steps taken culture. By comparison, the 2017
discussed for 2018. For 2017, towards environmentally B Corp Impact Report
$9,226,550 in revenue was reported sustainable operations, as well as communicated significant
with operating activity described as future sustainability goals. Steps additional detail regarding Meow
profitable (net income of $3,540,507). taken in 2017 included: Wolf’s human capital, describing a
At year end, $6,727,715 was reported ● 240 Solar Panels installed breakdown of 200+
in cash and $11,309,717 in other ● Water usage decreased by artists/creatives and 80+
assets; while manufactured capital was 25% operational employees, and
not delineated at greater specificity, ● Energy efficient remodeling exploring the benefits provided
the report did reference acquisition of (LED lighting, high (living wages, 100% health
real estate and, in particular, addition efficiency HVAC system, coverage, dental insurance,
of headquarters for housing Meow geothermal tube heating) education opportunities at the
Wolf’s Creative Studios. The ● Use of biodegradable local community college, and
WeFunder 2017 Report also explored serving utensils and 100% discounts to local shops and
narratively how Meow Wolf primarily recycling at all locations restaurants) as well as
generates revenue through Future goals presented were to: opportunities for additional
experiences; merchandising; food & ● Maintain energy savings of growth through shared ownership;
beverage sales; and design contracts, at least 69.1 Megawatts representation in the gift shop; and
and identified opportunities for future with the goal to increase ownership of individual artists’
revenue generation through traveling savings by 25% more intellectual property. Future goals
exhibits, entertainment productions, ● Improve water savings by at for employee growth were also
and worldwide merchandising. least 10% more described in this report.

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 REALIZATION OF RESOURCES, continued
RELATIONSHIP CAPITAL INTELLECTUAL CAPITAL REPUTATIONAL CAPITAL

Regarding relationships with This was one of the lightest capitals While still in the beginning stages
stakeholders, community partners, and tracked or communicated in either of brand recognition, Meow Wolf
vendors, both the WeFunder 2017 the WeFunder 2017 Report nor the demonstrated in both the
Report and 2017 B Corp Impact Report 2017 B Corp Impact Report; the WeFunder 2017 Report and 2017
made reference to these forms of former made a slight reference to it B Corp Impact Report that it has
relationship capital, with the 2017 B in describing themselves as a already begun building
Corp Impact Report dedicating more “trans-media, digital, technology reputational capital. Specifically,
space and specificity to the topic. enterprise”4 and delineating a few the Wefunder Report referenced
The WeFunder 2017 Report alluded to projects underway, including film the following accolades and
the importance of its investors, stating and animated shorts; customer recognition:
that “Investors were central to our virtual/augmented reality; and ● Thea Award for
success and fueled our growth…. More digital media content. Outstanding Achievement
than 600 people across New Mexico, in Connected Immersion
throughout the U.S. and in dozens of Previous research of this ● TripAdvisor Certificate of
countries own shares in our company.”3 organization indicates that Meow Excellence
The WeFunder report also mentioned Wolf possesses the following ● Yelp Top 10 Music Venue
George R.R. Martin (author of Game of copyrights with the United States ● 190,000 Facebook likes
Copyright Office:5
Thrones) and Jared Tarbell (co-founder ● 50,000+ Instagram
● Glow Forest (Visual Material,
of Etsy) as key stakeholders. In the copyright 2016) followers
2017 B Corp Impact Report, ● House of Eternal Return (Visual ● 1,700 online reviews
community engagement was Material, copyright 2016) ● 90% 5-star rating on
highlighted as being core to the Meow ● The Laser Pyramid (Visual Tripadvisor
Wolf mission, and was a described as Material, copyright 2016)
being realized through supporting ● Meow Wolf: Origin Story (Motion The 2017 B Corp Impact also
artists locally and nationally; Picture, copyright 2018) linked to favorable media
partnering with local schools and coverage from news outlets PBS,
Meow Wolf also holds significant
nonprofits; inspiring children to create intellectual capital in the form of Vice, and Forbes. Additional
at their on-site learning center; and audio tours and a custom app that research conducted for this
partnering with local communities in accompany House of Eternal analysis yielded significant news
their expansion areas. They also Return; multiple other art coverage as well as recognition of
referenced their philanthropic DIY installations and collaborations; the following awards:
Fund, created to reinvest funds in and music videos, mini ● New Mexico’s 45th Annual
fellow art collectives, and that over documentaries, and animation, all Governor’s Award for
found in various areas of the Excellence in the Arts7
50% of their vendors are locally
official Meow Wolf website.6 ● Spirit of SXSW Award8
sourced from the community.

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 REALIZATION OF RESOURCES:
Capitals in Motion
FINANCIAL/ FINANCIAL/
MANUFACTURED MANUFACTURED
- $3 million in assets in - $9+ million in revenue
2016, including House of - $17+ million in equity
Eternal Return installation capital
- Creative studio HQ

NATURAL NATURAL
- Land ORGANIZATIONAL - Solar panels
- Repurposed art and - Waterless urinals
PROCESSES - LED lighting, high
building materials
efficiency HVAC system,
Crowdfunding geothermal tube heating

HUMAN Customer HUMAN

- Local artists and - 289 Employees
creatives that formed the
Service/Engagement - Shared Ownership
- Full Benefits

OUTPUTS
start of Meow Wolf’s
- Artist Representation
INPUTS

collective Environmental
Responsibility and
Partnerships RELATIONSHIP
RELATIONSHIP
- Starting investors - 600+ crowdfunding
(George R.R. Martin, Jared Employee Cultivation investors
Tarbell) - Local school partners
- Local vendors
Community - “DIY Fund” for fellow
Collaborations & collectives/nonprofits
Philanthropy
INTELLECTUAL INTELLECTUAL
- Visual material - Additional copyrights,
copyrights
Marketing
including documentary
- Virtual/augmented
New Market Outreach reality
- Digital media content

REPUTATIONAL REPUTATIONAL
- 400,000 visits in first 12 - High customer ratings
months of operating, - Industry awards
generating significant - Increased news coverage
news coverage - Market expansions

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STAKEHOLDERS & ACCOUNTABILITY
EMPLOYEES/ARTISTS

INVESTORS CUSTOMERS

Shifting from the lens of resources and Meow Wolf’s second most significant
capitals, we next examine here the key stakeholder group consists of the employees
stakeholder groups with which Meow Wolf and artists which comprise the organization
partners in order to create value and the and its human capital, and who in turn affect to
processes of accountability present in those its relationship, intellectual, and reputational
partnerships and interactions; due to the capitals. The 2017 B Corp Impact Report
nature of the capitals discussed previously, explored some of the ways in which the
however, there is some overlap here in both organization is accountable to this stakeholder
information and analysis. group: as a B Corporation, they must
demonstrate a certain level of commitment to
First and foremost, Meow Wolf’s key employee well-being that is reflected
stakeholder group could be considered its inherently in the designation and clarified
investors, which contribute direct financial further in the report, which outlines the
value and include its original investors; benefits and opportunities afforded
crowdfunding investors recruited via employees.
WeFunder; and the employees who own stock
in the company. The primary areas of concern The third most impactful stakeholder group on
for these stakeholders include Meow Wolf’s value creation is Meow Wolf’s customer base,
financial health and responsibilities; risks and for whom primary concerns include quality,
opportunities; and corporate social variety and innovation of experience, and
responsibility, all of which are addressed in service. Measures of public accountability
both the WeFunder 2017 Report and 2017 B here include the customer review process, as
Corp Impact Report. reflected in online reviews described earlier.

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STAKEHOLDERS & ACCOUNTABILITY,
continued
GOVERNMENT

COMMUNITY MEDIA

Moving outward from key stakeholders Neither the WeFunder 2017 Report nor the
mentioned on the previous page, those 2017 B Corp Impact report directly reference
stakeholder groups at a secondary level of Government stakeholders, but they are
impact and involvement include the included here in relation to expansion into new
Community, Government, and Media. markets. For this stakeholder group, key areas
of concern include economic benefits and
Community stakeholders mentioned explicitly opportunities; environmental impacts; and
in the Meow Wolf reports consist of local regulation. While some of those concerns, in
vendors, schools, and fellow non-profit and particular environmental impact, are reflected
arts organizations; for these stakeholders, in current Meow Wolf certification and
primary areas of concern include the reporting, there remains an opportunity for
educational, participatory, and collaboratory further accountability and engagement.
benefits and opportunities afforded by Meow
Wolf along with the impact of its The final relevant stakeholder group is the
infrastructure and environmental choices. Media, which contributes directly to Meow
Wolf’s reputational capital by serving as a
Again, the B Corp certification reflects here a conduit of brand recognition. For this group,
measure of implicit accountability, while the access to information and transparency are
value creation process of engaging with these key accountability issues, both of which are
stakeholders is two-way: as Meow Wolf builds provided through the combined reports
up value for these stakeholders, they in turn presented in this analysis as well as through
contribute directly to its relationship and the press releases and news sections of Meow
reputational capitals. Wolf’s website and social media.

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RISKS + EXTERNALITIES
In its WeFunder 2017 Report, Meow Wolf ● Financial risks were expressed in the
disclosed an extensive list of risks that could form of debt, with an unconventional
negatively affect future business operations or loan having been secured to finance the
outcomes, as well as risks specific to creative headquarters studio, as well in
WeFunder crowdfunding investors; for the the possibility of future insufficient
purposes of this analysis, we will focus capital if future capital fundraising
primarily on those expressed risks affecting efforts are unsuccessful.
operations, outcomes, and all stakeholder
groups beyond just investors.
● Reliance on the existing management
9 team was also disclosed as a potential
● “Lack of significant operating history”
was presented as a risk for potential risk, with none of its management
investors in particular, but could also be members operating under contracts
considered a risk to other stakeholder and with a described lack of “operating
groups as well who are seeking to experience in a project of this nature”10
invest their time or energies into the across management that could
organization, such as potential new negatively impact organizational
employees; community organizations outcomes.
considering partnerships; or local
governments in the areas to which
Meow Wolf is expanding. ● Finally, the very nature of Meow Wolf
as a public benefit corporation was
● Marketplace and industry risks were expressed as a risk, since decisions
also discussed that could affect a range favoring social benefit could take
of stakeholder groups and precedence over ones with a greater
organizational outcomes. In particular, financial benefit; while this may indeed
the fact that Meow Wolf is operating in pose a measure of immediate
a single industry - arts and operational or financial risk, taken in
entertainment - that is highly the context of resources and long-term
competitive was presented as a risk, as value creation presented earlier, this
well as the fact that it is currently seems to be the least significant of the
limited in geographic scope. risks presented.

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TOWARDS THE FUTURE:
RECOMMENDATIONS FOR IMPROVING
VALUE CREATION
Although still a nascent organization with just a strong range of capitals for value creation,
slightly over three years of formal operating the connection of those capitals to each other,
history, Meow Wolf has already demonstrated to future value creation, and to Meow Wolf’s
a commitment to sustainable long-term value long-term strategic plans are not made
creation as a registered public benefit consistently explicit in the reports analyzed
corporation dedicated to the triple bottom line herein. In particular, Meow Wolf could
of people, planet, and profit. As explored in emphasize more directly how both the
this report, Meow Wolf has built significant strength and structure of its human and
financial, natural, human, relationship, and intellectual capitals, two of the richest areas
symbolic capital that contribute to its for its value creation, relate to its overall
immediate and future value creation. strategic missions and plans for future growth.
It could also benefit from exploring the forms
But where to go from here? of its structural capital, an area which was
primarily absent in both reports (with the
In considering improvements for future value exception of the management team risk
creation, it is the opinion of this report that presented in the WeFunder 2017 Report), but
key areas for Meow Wolf to strengthen which will be critical to future expansion
include the connectivity of its thinking and efforts and organizational sustainability.
operations; the framework of its reporting;
and the nature of its communication, REPORTING
especially with key stakeholder groups. These
areas - and associated actions for improving In developing this connectivity of thought and
them - are overlapping and mutually strategic action, Meow Wolf could benefit
reinforcing. from utilizing a form of the Integrated
Reporting Framework developed by the
CONNECTIVITY International Integrated Reporting Council.
Currently, the capitals realized in this analysis
While it may be clear that Meow Wolf has are reflected in two separate reports (the
WeFunder 2017 Report and the 2017 B Corp

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TOWARDS THE FUTURE:
RECOMMENDATIONS FOR IMPROVING
VALUE CREATION
Impact Report), which results in a fragmented COMMUNICATION
understanding of Meow Wolf’s value creation
process. The WeFunder 2017 Report primarily Finally, while Meow Wolf has established and
focuses on issues relating to financial capital demonstrated a healthy base of stakeholder
and risk management, while the 2017 B Corp engagement and measures of accountability
Impact Report primarily delineates the with its investors, employees/artists,
extensive natural, human, and relationship customers, community, government, and
capitals which it possesses. media, there are opportunities for
improvement, especially as it grows into new
By employing an integrated reporting markets and continues to expand and reach
framework, Meow Wolf could not only more new stakeholders. Connected thinking and
clearly demonstrate the breadth of these action, measured and communicated through
capitals and their relation to each other for integrated reporting, will not only better equip
external stakeholders, but could also measure Meow Wolf to express accountability to
and articulate them for internal use to aid in stakeholders but also to strengthen those key
overall strategic and operational connectivity. relationships for improved value creation.

CONNECTIVITY REPORTING

Improving
Value
Creation

COMMUNICATION

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References + Footnotes
Meow Wolf WeFunder 2017 Report (https://wefunder.com/meow.wolf/reports/2017)
Meow Wolf 2017 B Corp Impact Report
(http://headless.meowwolf.com/wp-content/uploads/2018/11/MW_impact_report-2017.pdf)

1
B Lab Legal Requirements (https://bcorporation.net/certification/legal-requirements)
2
Meow Wolf WeFunder 2017 Report: Overview
(https://wefunder.com/meow.wolf/reports/2017)
3
Meow Wolf WeFunder 2017 Report: Introduction
(https://wefunder.com/meow.wolf/reports/2017)
4
Meow Wolf WeFunder 2017 Report: Introduction
(https://wefunder.com/meow.wolf/reports/2017)
5
United States Copyright Office Public Catalogue
(https://cocatalog.loc.gov/cgi-bin/Pwebrecon.cgi?Search_Arg=meow+wolf&Search_Code=NALL
&PID=Rq0E68ZxAz6_Kcjukwb-g3ylNSs&SEQ=20190429214856&CNT=25&HIST=1)
6
Meow Wolf website (https://meowwolf.com)
7
New Mexico Arts
(http://www.nmarts.org/2018-governors-awards-for-excellence-in-the-arts.html)
8
SXSW
(https://www.sxsw.com/news/2018/the-sxsw-creative-experience-arrow-awards-2018/)
9
Meow Wolf WeFunder 2017 Report: Risks
(https://wefunder.com/meow.wolf/reports/2017)
10
Meow Wolf WeFunder 2017 Report: Risks
(https://wefunder.com/meow.wolf/reports/2017)

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