Proptech company Roof stock today laid off about 27% of its workforce, according to an email sent to employees reviewed by ukbusinessupdates.com. The cuts come just five months after the startup laid off 20% of its workforce.
The companies website states that it has over 400 employees, or “Roofsters” as they are called, but it is unknown if that figure is current.
Roofstock, one online marketplace for investing in rented single-family homes, a year ago raised $240 million at a valuation of $1.9 billion. SoftBank Vision Fund 2 led that funding, including participation from existing and new lenders, including Khosla Ventures, Lightspeed Venture Partners, Bain Capital Ventures and others. Roofstock has raised a total of more than $365 million in funding since its inception in 2015 Crunchbase.
According to ukbusinessupdates.com’s email, co-founder and CEO Gary Beasley said today’s reduction in power (RIF) was “in response to the challenging macro environment” and the “adverse impact” it is having on the business of Roofstock.
He added that the company did not expect to have to cut more staff so quickly, but that it needed to be “the right size” in an effort “to reduce the cash burn rate” and ensure it had “sufficient capital careers”. until the market finally turns”.
Beasley sent the email because apparently the Zoom meeting it was addressed to was “at maximum attendance.”
Oakland, California-based Roofstock lets people buy and sell rental properties in dozens of US markets. The company’s premise is that both institutional and private investors can buy and sell homes without forcing tenants to leave their homes. Meanwhile, buyers can presumably generate income from day one as well.
At the March 2022 raise, the company said it was more than $5 billion in transaction volume, more than half of which was in the past year alone.
Just days before last year’s latest round of layoffs, Roofstock made headlines selling his first single-family home using NFTsor non-fungible tokens.
Rising mortgage rates and a slowdown in the housing market led to challenges for many real estate tech companies in 2022 that will continue this year. Opened door, Redfin, Compass, Better. com And Homeward were among the other startups that also laid off employees. IBuyer Reali also announced that it was to block after raising $100 million the previous year.
ukbusinessupdates.com has reached out to Roofstock but hadn’t heard back at the time of writing, but multiple sources confirmed there were layoffs today.