Here, the short-term vacation rental market has partially closed after just over two years of operation.
The Miami-based startup, which has raised a reported $5 million in funding, posted on its website website On January 3, it announced it would cease operations “due to the current interest rate environment and economic conditions.” Fiat Ventures led its $3.5 million seed round in July of 2022, according to Crunchbase
The company said in a statement on its website that its goal is to sell all the properties it owns within the next six months. a Deposit The US Securities and Exchange Commission revealed The company reported a net loss of $56,374 on its holdings during the six months ending June 30, 2023. Notably, it generated revenue of $276,233 during the same period. But here you also reported paying $166,305 in interest during the same time frame, and $58,920 in “other expenses.”
The company was founded in July of 2021 but did not launch operations until 2022. According to the post ShortTermRentalz, the market gave investors a way to gain partial ownership of vacation rentals. Here handled the property management process, promising that “members can earn a monthly income from their investment proposals and potential property appreciation.”
Interest rates have risen over the past two years, contributing to a wave of proptech startups closing up shop. Just last week, TechCrunch broke the news that Frontdesk, a short-term rental company, had been acquired It laid off all its employees and was on the verge of closing. Last November, we reported Zeus Living was shutting down after raising $150 million in debt and equity.
Want more fintech news in your inbox? Sign up for the exchange here.