Another proptech startup crashes and burns, cites ‘current interest rate environment’

Here, a fractional short-term vacation rental marketplace, has shut down its investment platform after just over two years of operation.

The Miami-based startup, which had raised a known $5 million in funding, posted on its website on January 3 that it was shutting down the platform “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. Other backers include Joe Montana’s Liquid 2 Ventures, Mucker Capital, Bragiel Brothers, Alumni Ventures, Gaingels, and a number of fintech executives.

In a statement on its website, the company said its goal was to sell all of the properties that it holds within the next six months. A filing with the U.S. Securities and Exchange Commission reveals the company had reported a net loss of $56,374 from its properties for the six months ended June 30, 2023. Notably, it generated $276,233 in revenue during the same period. But Here also reported paying $166,305 in interest during the same time frame, and $58,920 in “other expenses.”

In a written statement via email, a company spokesperson: “Only Here’s fractional investment platform shut down on January 3rd, 2024. Here’s other business units will continue to operate as usual.” The company did not specify what those business units are, or respond to a query as to whether or not it had laid off staff.

Here was founded in July of 2021 but didn’t launch operations until 2022. According to the publication ShortTermRentalz, the marketplace gave investors a way to acquire partial ownership of vacation rentals. Here handled the property management process, pledging that “members could earn monthly income on their investment proposition and potential property appreciation.”

Here offered shares for as little as $1 as part of its self-described mission of providing “a lower barrier to entry to invest in the vacation rental asset class.”

CEO and co-founder Corey Ashton Walters also co-founded Homeworthy, a remote cloud real estate brokerage.

“Here has made impressive strides to democratize access to vacation rental investments, an asset class historically reserved for the ultra-wealthy,” said Marcos Fernandez, managing partner of Fiat Ventures, in a written statement. “Although the company is winding down its fractional investment platform, it is alive and operational, committed to its mission and actively pursuing new avenues.”

Interest rates have surged over the past two years, contributing to a flurry of proptech startups to close up shop. Just last week, TechCrunch broke the news that Frontdesk, a short-term rental provider, had laid off its entire staff and was on the verge of shutting down. Last November, we reported on Zeus Living reportedly shutting down after raising $150 million in debt and equity.

This story was updated post-publication to include a quote from Fiat Ventures and a company spokesperson.

Want more fintech news in your inbox? Sign up for The Interchange here.

source

Leave a Reply

Your email address will not be published. Required fields are marked *