San Francisco, July 23 US-based proptech startup Stoa has laid off 80 per cent of its workforce after undergoing dramatic cutbacks.
The company has raised a total of $300 million since its inception in 2017, with $100 million raised in equity and $200 million raised in debt. Between November 2021 and August 2022, nearly the full amount was raised in less than a year, reports CTech.
In addition, the company recently got an unknown investment and stated that it is considering several options.
"In response to the changes in the real estate market, the company is undergoing a reorganisation and has reduced its workforce to about 20 employees. Currently, there are several deals on the table that the company is considering," the company was quoted as saying.
The company was founded by Israelis Or Agassi (CEO), Tom Sella, and Jonathan Saragossi, who has since left the company, the report mentioned.
FlipOS, Stoa's iBuyer software platform, was created to help real estate investors buy, refurbish, and sell homes more quickly and efficiently.
Meanwhile, US-based free streaming app Plex has laid off about 20 per cent of its workforce due to a drop in overall advertising revenue.
According to The Verge, every department has been affected due to the layoff and about 37 workers lost their jobs.
"Plex's ad business has been 'significantly impacted' by the downturn in global advertising markets, and unfortunately, we cannot know how long ad markets and pricing will continue to be depressed and volatile," Plex CEO Keith Valory was quoted as saying.
"The company has decided to try and get its budget back to being cash-flow positive in the next 18 months, but the only way to reach profitability under these constraints is to significantly reduce our personnel expenses," he added.
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