HomeShare, the San Francisco-based startup that offered a piece of San Francisco’s newest and ritziest buildings to renters who wouldn’t normally be able to afford them, shuttered last week after finding itself unable to cover expenses.
HomeShare CEO Jeff Pang announced the closure on Friday, blaming “unexpected financial constraints” and conceding that “HomeShare no longer has the capital to continue to operate.”
Pang added in a note to HomeShare’s former customers, “We are disappointed in ourselves for failing to provide the level of service you deserved from us.”
After launching in 2016, HomeShare offered renters a chance to live in upscale new condos by dividing homes into comparatively affordable, ultra-micro units via temporary partitions.
HomeShare partitions measured around 100 to 120 square feet and started at $1,300 per month at launch.
Last week, HomeShare customers and vendors received an email from company cofounder Ankir Garg (forwarded to Curbed SF), saying, “HomeShare no longer has staff and has ceased all operations.” Garg also warned, “We are unable to pay any future or outstanding invoices.”
The news comes as little surprise; HomeShare showed obvious signs of pending disaster in recent weeks. On April 7, the company announced it had laid off most of its staff, shut down non-Bay Area operations (the company previously also worked in LA and New York City), and would stop processing its customers rent payments.
In part, Pang wrote:
Acting as a middle-man for payments was adding complexity and confusion to the billing process. As a result, we decided to remove ourselves from the payment flow so that residents could pay leasing offices directly. Due to unforeseen financial constraints, we were forced to make these changes much sooner than expected. [...] In all candor, it has been a tough few weeks.
Even these extreme measures were not enough to keep the company upright in the face of its lack of capital.