Another proptech startup goes under fire due to ‘current interest rate environment’

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Here, a segmented short-term vacation rental marketplace closed after just over two years of operation.

The Miami-based startup reportedly raised $5 million in funding. Website On January 3, the company announced it would cease operations “due to the current interest rate environment and economic conditions.” Fiat Ventures led a $3.5 million seed round in July 2022, according to Crunchbase.

In a statement posted on its website, the company said its goal is to sell all of its real estate holdings within the next six months.a filing This was revealed in connection with the U.S. Securities and Exchange Commission. The company reported a net loss of $56,374 from its properties for the six months ended June 30, 2023. Significantly, the company had revenue of $276,233 in the same period. However, Here reported paying $166,305 in interest and $58,920 in “other expenses” during the same period.

The company was founded in July 2021, but started operations in 2022.According to the publication short term rental, the market offered investors a way to take partial ownership of vacation rentals. It will be in charge of the property management process and promises that “members will earn a monthly income based on investment proposals and potential increases in property value.”

Investor Fiat Ventures says its mission is to “make homeownership more accessible to thousands of people.”

Interest rates have skyrocketed over the past two years, contributing to a flurry of proptech startups shutting down operations.Just last week, TechCrunch reported that short-term rental provider Frontdesk All employees were fired and the business was on the verge of going out of business.. Last November, we reported that Zeus Living was reportedly shutting down after raising $150 million in debt and equity.

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