Seattle actual property startup Flyhomes is shedding staff for the second time in 5 months.
“Constructing the world’s finest house shopping for and promoting expertise can solely occur if we proceed to adapt to the quickly shifting market circumstances, and take the required, albeit painful steps, to protect capital via unsure financial circumstances to make sure the long run trajectory of the corporate,” the corporate wrote on LinkedIn. “The truth is, the housing sector is now in a recession, and the most recent stories present that the market is predicted to proceed cooling for longer than anybody initially predicted.”
A spokesperson declined to supply particulars on the variety of cuts or whole headcount.
The corporate laid off roughly 20% of its employees in July. It has round 700 staff, in keeping with LinkedIn.
Actual property tech firms wish to reduce prices amid a slowing housing market and rising rates of interest, in addition to broader financial uncertainty. Redfin introduced it was shedding 13% of its workforce Wednesday. Redfin CEO Glenn Kelman stated the market in 2023 “is prone to be 30% smaller than it was in 2021.”
Based in 2016, Flyhomes helps individuals purchase properties utilizing a money provide program which presents clients because the equal of money patrons.
The startup additionally gives mortgage providers and has a Purchase Earlier than You Promote program that helps sellers purchase and transfer into their subsequent house earlier than promoting their present property.
Flyhomes has helped clients purchase greater than $3 billion price of properties.
The corporate is led by CEO and co-founder Tushar Garg. It has raised greater than $200 million up to now, together with a $150 million Sequence C spherical raised in June 2021. Buyers embrace Norwest Enterprise Companions, Battery Ventures, Fifth Wall, Camber Creek, Balyasny Asset Administration, Andreessen Horowitz, Canvas Companions, and former Zillow Group CEO Spencer Rascoff.