Proptech startup Stoa slashes workforce after raising $300 million, uncertain future ahead
Proptech startup Stoa slashes workforce after raising $300 million, uncertain future ahead
The company cut its workforce by 80% from around 100 employees to just 20 and said that “there are several deals on the table that the company is considering”
Proptech startup Stoa has reduced its workforce by 80% from around 100 employees to just 20 after undergoing dramatic cutbacks. Rising inflation rates and the economic crisis dramatically changed the real estate market in the U.S., in which Stoa operates, handing the startup’s business model a significant blow.
Stoa raised a total of $300 million since its founding in 2017, $100 million in equity and $200 million in debt. Almost the entire sum was raised in less than a year, between November 2021 and August 2022.
The company recently received another undisclosed investment and said that it has several options on the table.
“In response to the changes in the real estate market, the company is undergoing a reorganization and has reduced its workforce to about 20 employees. Currently, there are several deals on the table that the company is considering,” the company told CTech in a statement.
The Arizona-based company was founded by Israelis Or Agassi (CEO), Tom Sella, and Jonathan Saragossi, who has since left the company.
Stoa’s iBuyer software platform, FlipOS, was developed to enable real estate investors to purchase, renovate, and sell homes faster and more efficiently. The company offered investors with low-rate lending and a guaranteed post-renovation purchase offer with a five-day close.
One of the company’s main investors is Oren Zeev, with additional investors including BRM and Fintech Acquisition Corp. (FTAC).
