Doorsey, an Adam Neumann-backed startup, lays off more than half of its staff

Doorsey, a Spokane, Washington-based home buying platform backed by WeWork co-founder Adam Neumann, has laid off more than half of its staff, Insider has learned, after struggling to raise a new round of financing amid a rapidly cooling startup market.

Doorsey reduced its staff from 24 to nine people, a Doorsey spokesman confirmed.

“Given current capital market conditions, we have had to make the difficult decision to lay off several members of the team,” the company said in a statement. “We believe this is in the best interest of Doorsey as we look to keep our growth sustainable.”

Doorsey was founded late last year by Nick McLain, Matt Melville and Jordan Allen, who previously founded Stay Alfred, an apartment rental startup that raised more than $60 million in funding before filing for bankruptcy in 2020.

At Doorsey, Allen, who serves as CEO, said he was inspired to bring an open bidding process to residential real estate after his own frustrations with Zillow’s algorithm and trying to buy a home in such a competitive market.

“In the last 18 months, I’ve put in close to 70 home offers, sometimes three on the same house. And I lose almost every time,” Allen told Insider’s Alex Nicoll last year. “We came in with a low asking price and created some excitement and momentum, got more buyers to come in and see the house, and let them compete.”

In November, Doorsey announced $4.1 million in seed funding led by 166 2nd Financial Services, the family office of WeWork founder Adam Neumann.

Neumann’s spokesman did not respond to a request for comment.

Roughly 10 other proptech CEOs also participated in the seed round, as well as football legend Joe Montana’s Liquid 2 Ventures.

But raising a new round this spring proved more difficult as venture capitalists withdrew funding for startups in general. Real estate tech startups in particular have been pushed back as mortgage rates rise and the housing market shows signs of cooling; Publicly traded real estate companies like Redfin have seen their shares fall more than 75% this year.

Allen pitched to a slew of investors, including MetaProp, Fifth Wall, 75 and Sunny, and Tiger Global, but they all approved, according to sources.

Still, Allen bragged to potential investors that Tiger Global had agreed to be part of the new funding round, according to two people not authorized to speak publicly on the matter.

A Tiger Global spokesman declined to comment. A Doorsey spokesperson described this as “really inaccurate”.

“We remain laser-focused on our active fundraising, which includes a number of signed pledges, while continuing to meet demand by delivering to our customers,” the spokesperson added.

After expanding to markets like Austin, Atlanta, San Francisco, Doorsey announced last week that it would start operations in Raleigh, North Carolina.

Doorsey isn’t alone when it comes to layoffs. As of mid-June, more than 21,000 US tech workers, from Cameo to Fast, have been laid off this year, according to Crunchbase.

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