You’d be hard-pressed to find a more efficient way of losing money over the last two years than investing in real estate startups when they went public.
Venture-backed real estate companies that went public in the last two years have lost an average of 85% of their debut value, according to an analysis by Crunchbase. The losses from these companies — which include Opendoor, WeWork, Compass, loanDepot and Vacasa — total more than $42B. None of them have gained value from their opening price.
There are a number of headwinds that are buffeting these stocks, including overly optimistic initial valuations,