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Short-term rental provider Frontdesk lays off entire staff, on the verge of shutting down
January 11, 2024

Short-term rental provider Frontdesk lays off entire staff, on the verge of shutting down

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Another proptech startup has run into trouble.

The layoffs, which included full-time, part-time workers and contractors, occurred Tuesday afternoon during ‘a two-minute Google Meet call,’ according to one employee who was among those attending the virtual meeting.

During that call, Frontdesk CEO Jesse DePinto told employees that Frontdesk would be filing for a state receivership, an alternative to bankruptcy, according to the sources.

Frontdesk, which was founded in 2017, had raised about $26 million from investors such as JetBlue Ventures, Veritas Investments and Sand Hill Angels, according to Crunchbase.

The startup’s business model, which is leasing apartments at market rental rates and furnishing them for short-term rentals in more than 30 markets, has struggled largely due to the upfront costs involved, associated capital expenditures and variables in demand and rates, one of the sources said. Others in the space have also had challenges, including Stay Alfred, Domio, Lyric, Zeus Living, The Guild and WanderJaunt.


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