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Another proptech startup has run into trouble .
Frontdesk , a startup that get by more than 1,000 furnished apartment across the United States , laid off its entire 200 - mortal men Tuesday after attempts to raise more Washington failed , TechCrunch exclusively learned from sources conversant with inner natural event at the company . The aggregate layoff come just seven months after the Milwaukee , Wisconsin - based startupacquired smaller rival Zencity .
The layoffs , which include full - time , part - sentence worker and contractors , occurred Tuesday afternoon during“a two - mo Google Meet call , ” according to one employee who was among those serve the practical group meeting .
During that call , Frontdesk CEOJesse DePintotold employees that Frontdesk would be file away fora state receivership , an choice to failure , according to the source .
The fellowship has not responded to a request for remark . When call the phone number on Frontdesk ’s website , a transcription says : “ Currently , Frontdesk is unavailable . If you have a booking , please try alternative accommodations and expect to be contacted within the next two weeks . ” TechCrunch will update the clause if the company responds .
Frontdesk , which was founded in 2017 , hadraised about $ 26 millionfrom investors such as JetBlue Ventures , Veritas Investments and Sand Hill Angels , according to Crunchbase .
Frontdesk went out for a bridge around , assay to deal investors on a new plan of doing full building direction , sources told TechCrunch . That tactics did n’t put to work out and the society could n’t keep operate . Frontdesk was apparently still affirmative about its power to raise more upper-case letter ; the inauguration had posted on LinkedIn first step for several jobs , includinga chief of stave use , just two months ago .
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As a solvent of all the challenges , the company was not only not able-bodied to make rent on a telephone number of place but had “ little to no communicating with ” the reportedly infuriate landlords , according to the sources .
The startup ’s patronage simulation , which is rent apartments at market rental rates and furnishing them for short - term rental in more than 30 securities industry , has clamber largely due to the upfront cost involved , associated capital expenditures and variable in demand and pace , one of the author said . Others in the blank have also had challenges , including Stay Alfred , Domio , Lyric , Zeus Living , The Guild and WanderJaunt . Ironically , Frontdesk previously acquired over 100 units across several cities fromWanderJaunt , Stay Alfred , LyricandDomio .
