PropTech startup Knock, which offers financing for shoppers to buy new homes before selling their old ones, on Friday (March 18) announced that it’s scrapping its planned initial public offering (IPO) at a $2 billion valuation and instead laying off 46% of its 250 employees, Propmodo reported.
Knock will now pursue private funding sources as part of a revamped strategy to raise fresh capital. The company has nailed down $70 million in equity and $150 million of new debt in a funding round led by Foundry Group, with participation from First American Financial, RRE Ventures, real estate executive Mauricio Umansky and film director M. Night Shyamalan.
Knock Co-founder and CEO Sean Black wouldn’t say how the new round of investment dollars values the company, but said the valuation is not lower than the company’s last fundraising round. Black said Knock “is doing great,” adding the COVID-19 pandemic and the flop of Zillow’s home-buying service Zillow Offers made an IPO impossible for the company now.
“There’s no IPO market right now,” Black said in the report.
Related: Real Estate Rental FinTech Piñata Nets $13M
In February, Piñata, which describes itself as a rental club whose incentive system makes the renting process easier for tenants and landlords alike, raised $13 million in a Series A funding round, according to a company press release.
The Series A round was led by existing investor Wilshire Land Capital and brings Piñata’s total funds raised to $20 million, according to the announcement.
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