Stoa, a US-based proptech startup, has laid off 80 per cent of its workforce as part of significant cutbacks. Since its inception in 2017, the company raised a total of $300 million, with $100 million in equity and $200 million in debt funding. Most of this funding was secured between November 2021 and August 2022, in less than a year. Recently, the company received an undisclosed investment and is exploring various options
Attributing the layoffs to changes in the real estate market, Stoa is undergoing a reorganisation, retaining only around 20 employees. Despite the downsizing, the company is considering several potential deals.
Stoa’s founders include Israelis Or Agassi (CEO), Tom Sella, and Jonathan Saragossi, though the latter has already left the company. Their iBuyer software platform, FlipOS, was designed to enhance the efficiency of real estate investors in buying, refurbishing, and selling homes.
In a similar vein, US-based free streaming app Plex has also faced layoffs, affecting about 20 per cent of its workforce. The company’s advertising revenue decline has impacted all departments, leading to 37 job losses. Keith Valory, CEO, Plex cited the downturn in global advertising markets as a significant factor, making it challenging to predict how long the situation will persist. To achieve cash-flow positivity within 18 months, the company has opted for personnel expense reduction in order to reach profitability amid uncertain market conditions.
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