Miami-based proptech startup Here, a fractional short-term vacation rental marketplace, has announced its closure after just over two years of operation.
Funding and Backers:
Here had raised $5 million in funding during its relatively short operational period. Fiat Ventures led its $3.5 million seed round in July 2022, with backing from notable investors such as Joe Montana’s Liquid 2 Ventures, Mucker Capital, Bragiel Brothers, Alumni Ventures, Gaingels, and various fintech executives.
Financial Performance and Shutdown Details:
The startup reported a net loss of $56,374 from its properties for the six months ended June 30, 2023. During the same period, it generated $276,233 in revenue but faced challenges with $166,305 in interest payments and $58,920 in other expenses. Here expressed its intention to sell all properties it holds within the next six months.
Business Model:
Here provided investors with the opportunity to acquire fractional ownership of vacation rentals, aiming to democratize access to vacation rental investments. The company managed the property process, enabling members to earn monthly income on their investment and potential property appreciation. Shares were offered for as little as $1, reducing the barrier to entry for investing in the vacation rental asset class.
CEO Background:
Corey Ashton Walters, CEO, and co-founder of Here had previously co-founded Homeworthy, a remote cloud real estate brokerage.
Industry Challenges:
The closure of Here adds to the list of proptech startups facing challenges in the current economic landscape. Rising interest rates over the past two years have contributed to the closure of several startups in the proptech and short-term rental space, highlighting the impact of external economic factors on the industry.
Future Plans:
Despite winding down its fractional investment platform, Here stated that it remains alive, operational, committed to its mission, and actively exploring new avenues.
Conclusion:
Here’s closure underscores the impact of economic conditions and interest rate fluctuations on proptech startups, urging industry players to navigate challenges effectively. The company’s commitment to its mission and exploration of new opportunities suggests a resilient approach despite the shutdown of its initial business model.