Startups targeting home buyers are struggling as interest rates and inflation have risen and inventory shortages persist in many markets.
The latest victim in space is Reali, who announced that it has started with a shutdown and will lay off most of its staff on September 9.
In a press releaseco founder and chairman Amit Haller said that “the challenging real estate and financial market conditions and the unfavorable environment for raising capital” led to the decision to wind down the business.
“Reali was one of the pioneers in offering homeowners the ‘buy before you sell’ and ‘cash offer’ programs,” he said in the press release. “We firmly believed that the consumer should come first in every transaction.”
Amit Haller and Ami Avrahami founded reality in Israel in 2016 out of personal frustration as real estate investors with the quality of service provided by brokers and the high commissions they paid.
Their goal was to “make the real estate buying and selling process more transparent, fair and professional”.
The startup touted that customers could buy and sell in one coordinated transaction, “eliminate resale condition, move twice and pay two mortgages at once.”
Since its inception, the company has raised more than $290 million in debt and equity financing, according to Crunchbase. The last increase was a $100 million Series B in August 2021 led by Zeev Ventures with the participation of Akkadian Ventures, Signia Ventures and others. At the time of that increase, the company was: reported to have 180 employees, according to CTECH by Calcalist. The same publication reported this week that: Reali had 140 employees.
In its press release, Reali said that: “a small team of employees” would continue to support active real estate transactions through the end of the year.
The company added that it is in talks with companies that have expressed interest in buying certain parts of its business, including providing mortgages, property rights and escrow and purchasing power.
Haller and Avrahami also founded another startup, Veev, areal estate developer became a technology-enabled homebuilder in March raised $400 million in a Series D round that propelled the company to “unicorn status”.
Reali is not alone in its challenges. home recently laid off 20% of its staff. And better.comwho has had numerous other problems, has laid off thousands this year.
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