In a startling move, proptech startup Frontdesk, managing over 1,000 furnished apartments, left its entire workforce of 200 employees in the lurch through a two-minute Google Meet call on Tuesday.
The drastic decision came as a result of Frontdesk’s failure to secure additional capital, according to sources familiar with the situation. The termination affected full-time, part-time workers, and contractors alike. Despite facing challenges, including high upfront costs, capital expenditures, and fluctuations in demand and rental rates, the company had recently attempted to secure investors through a new plan for full building management.
Founded in 2017, Frontdesk had raised approximately $26 million from investors such as JetBlue Ventures, Veritas Investments, and Sand Hill Angels. The unsuccessful attempt to raise more capital led to the abrupt layoff decision. Frontdesk’s CEO, Jesse DePinto, conveyed during the brief call that the company would be filing for state receivership as an alternative to bankruptcy.
