One other proptech startup has run into hassle.
Frontdesk, a startup that managed greater than 1,000 furnished flats throughout america, laid off its complete 200-person workforce Tuesday after makes an attempt to boost extra capital failed, TechCrunch completely realized from sources accustomed to 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 employees and contractors, occurred Tuesday afternoon throughout “a two-minute Google Meet call,” in response to one worker who was amongst these attending the digital assembly.
Throughout that decision, Frontdesk CEO Jesse DePinto advised staff that Frontdesk can be submitting for a state receivership, an alternative choice to chapter, in response to 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: “Currently, Frontdesk is unavailable. If you have a reservation, please seek alternative accommodations and expect to be contacted within the next two weeks.” TechCrunch will replace the article if the corporate responds.
Frontdesk, which was based in 2017, had raised about $26 million from traders akin to JetBlue Ventures, Veritas Investments and Sand Hill Angels, in response to Crunchbase.
Frontdesk went out for a bridge spherical, trying 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 capability to boost extra capital; the startup had posted on LinkedIn openings for a number of jobs, together with a chief of staff role, simply two months in the past.
The startup’s enterprise mannequin, which is leasing flats 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 stated. Others within the area have additionally had challenges, together with Keep Alfred, Domio, Lyric, Zeus Living, The Guild and WanderJaunt.
