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Frontdesk, a proptech startup that operated over 1,000 furnished apartments across the United States, laid off its entire workforce of 200 people over “a two-minute Google Meet call” on Tuesday afternoon.
The layoffs affected full-time, part-time workers and contractors. The news was given to the staff during a Google Meet call that lasted only two minutes, told one of the employees attending the meeting.
Sources familiar with the matter told TechCrunch that the mass layoff was due to the failure of the company’s attempts to raise additional capital.
Frontdesk was founded in 2017 and managed over 1,000 furnished apartments across the United States. It had raised around $26 million from investors, including JetBlue Ventures, Veritas Investments, and Sand Hill Angels. The company attempted to raise more capital, but unfortunately, was unsuccessful in its efforts.
It has been reported that Frontdesk, which leases and furnished apartments for short-term rentals in over 30 markets, recently made an attempt to secure investors by proposing a new plan for full building management, but that did not go well with investors. Despite this setback, the company continued to post job openings on LinkedIn, including a chief of staff role, just two months prior, which suggests that Frontdesk remains optimistic about future fundraising.
According to sources, the startup has faced challenges due to high upfront costs, capital expenditures, and fluctuations in demand and rental rates.
The CEO of Frontdesk, Jesse DePinto, informed the employees during the call that the company would be filing for a state receivership, which is an alternative to bankruptcy.
The layoffs affected full-time, part-time workers and contractors. The news was given to the staff during a Google Meet call that lasted only two minutes, told one of the employees attending the meeting.
Sources familiar with the matter told TechCrunch that the mass layoff was due to the failure of the company’s attempts to raise additional capital.
Frontdesk was founded in 2017 and managed over 1,000 furnished apartments across the United States. It had raised around $26 million from investors, including JetBlue Ventures, Veritas Investments, and Sand Hill Angels. The company attempted to raise more capital, but unfortunately, was unsuccessful in its efforts.
It has been reported that Frontdesk, which leases and furnished apartments for short-term rentals in over 30 markets, recently made an attempt to secure investors by proposing a new plan for full building management, but that did not go well with investors. Despite this setback, the company continued to post job openings on LinkedIn, including a chief of staff role, just two months prior, which suggests that Frontdesk remains optimistic about future fundraising.
According to sources, the startup has faced challenges due to high upfront costs, capital expenditures, and fluctuations in demand and rental rates.
The CEO of Frontdesk, Jesse DePinto, informed the employees during the call that the company would be filing for a state receivership, which is an alternative to bankruptcy.
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