Another Proptech startup ran into a problem.
front seat, a startup that operates more than 1,000 furnished apartments across the United States, laid off its entire 200-person workforce on Tuesday after attempts to raise more capital failed, TechCrunch has learned exclusively from sources familiar with internal events at the company. The mass layoffs come just seven months after the startup in Milwaukee, Wisconsin Acquired smaller competitor Zencity.
Layoffs, which included full-time, Part-time workers and contractors, It happened on Tuesday afternoon during “A two-minute Google Meet call,” said one employee who was among the virtual meeting attendees.
During that call, Frontdesk CEO Jesse DePinto Tell employees that Frontdesk will place an order State guardAn alternative to bankruptcy, according to sources.
The company did not respond to a request for comment. When you call the number on the company’s website, a recording appears: “At this time, Frontdesk is unavailable. If you have a reservation, please seek alternative accommodations and expect to be contacted within the next two weeks. TechCrunch will update the article if the company responds.”
Frontdesk, founded in 2017, has done just that It raised about $26 million From investors like JetBlue Ventures, Veritas Investments and Sand Hill Angels, according to Crunchbase.
Frontdesk is out to tour the bridge, trying to sell investors on a new plan to do full management of the buildings, sources told TechCrunch. This tactic did not work and the company was unable to continue in business. It appears that Frontdesk was still optimistic about its ability to raise more capital. The startup posted on LinkedIn job openings for several positions, including The role of the Chief of StaffJust two months ago.
The startup’s business model, which is based on leasing apartments at market rental rates and furnishing them for short-term rentals in more than 30 markets, has faced significant difficulties due to the initial costs involved, the associated capital expenditure and variables in demand and prices, one of the most important factors. The sources said. Others in this space have also faced challenges, including Stay Alfred, Domio, lyric, Zeus livingGuild and WanderJaunt.