Here, a fractional short-term vacation rental marketplace, has ceased its investment platform operations after a little over two years in business. Based in Miami, the startup, which had secured approximately $5 million in funding, announced on January 3 its decision to shut down the platform, citing challenges posed by the current interest rate environment and economic conditions. Notably, Fiat Ventures led its $3.5 million seed round in July 2022, with backing from other notable investors such as Joe Montana’s Liquid 2 Ventures, Mucker Capital, and Alumni Ventures.
Platform Shutdown and Financial Struggles
In an official statement on its website, Here expressed its intention to liquidate all properties held within the next six months. According to a filing with the U.S. Securities and Exchange Commission, the company reported a net loss of $56,374 from its properties for the six months ending June 30, 2023, despite generating $276,233 in revenue during the same period. However, it also incurred substantial expenses, including $166,305 in interest and $58,920 in other costs.
Confirmation and Future Plans
A spokesperson for the company confirmed via email that Here’s fractional investment platform ceased operations on January 3rd, 2024, while other business units would continue unaffected. Despite this statement, specific details regarding the ongoing operations or any potential staff layoffs were not provided.
Founding and Mission
Founded in July 2021 and operationalized in 2022, Here aimed to democratize access to vacation rental investments, offering shares for as little as $1. CEO and co-founder Corey Ashton Walters, who also co-founded Homeworthy, a remote cloud real estate brokerage, emphasized the company’s mission of lowering barriers to entry in the vacation rental asset class.
Investor Confidence and Industry Challenges
Marcos Fernandez, managing partner of Fiat Ventures, acknowledged Here’s efforts to democratize vacation rental investments and expressed confidence in the company’s commitment to its mission, despite winding down its fractional investment platform.
Industry Turbulence
The closure of Here’s investment platform adds to a growing list of proptech startups affected by the turbulent interest rate landscape. Recently, Frontdesk, a short-term rental provider, laid off its entire staff, while Zeus Living reportedly ceased operations after securing $150 million in debt and equity funding. These closures underscore the challenges faced by proptech ventures amidst evolving economic conditions and highlight the volatile nature of the industry.
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