One other proptech startup has run into hassle.
Frontdesk, a startup that managed greater than 1,000 furnished residences throughout the US, laid off its complete 200-person workforce Tuesday after makes an attempt to lift extra capital failed, TechCrunch completely discovered from sources conversant in inside happenings on the firm. The mass layoff comes simply seven months after the Milwaukee, Wisconsin-based startup acquired smaller rival Zencity.
The layoffs, which included full-time, part-time staff and contractors, occurred Tuesday afternoon throughout “a two-minute Google Meet name,” in accordance with one worker who was amongst these attending the digital assembly.
Throughout that decision, Frontdesk CEO Jesse DePinto advised workers that Frontdesk can be submitting for a state receivership, an alternative choice to chapter, in accordance with the sources.
The corporate has not responded to a request for remark. When calling the quantity on the corporate’s web site, a recording says: “At the moment, Frontdesk is unavailable. You probably have a reservation, please search various lodging and count on to be contacted throughout the subsequent two weeks.” TechCrunch will replace the article if the corporate responds.
Frontdesk, which was based in 2017, had raised about $26 million from traders similar to JetBlue Ventures, Veritas Investments and Sand Hill Angels, in accordance with Crunchbase.
Frontdesk went out for a bridge spherical, making an attempt to promote traders on a brand new plan of doing full constructing administration, sources advised TechCrunch. That tactic didn’t work out and the corporate couldn’t maintain working. Frontdesk was apparently nonetheless optimistic about its capacity to lift extra capital; the startup had posted on LinkedIn openings for a number of jobs, together with a chief of employees position, simply two months in the past.
The startup’s enterprise mannequin, which is leasing residences at market rental charges and furnishing them for short-term leases in additional than 30 markets, has struggled largely as a result of upfront prices concerned, related capital expenditures and variables in demand and charges, one of many sources mentioned. Others within the area have additionally had challenges, together with Keep Alfred, Domio, Lyric, Zeus Dwelling, The Guild and WanderJaunt.