Evaluating only HomeTeam’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
HomeTeam founded in New York to tech-enable home care aide matching for seniors.
FUNDING
Raised $37M Series B led by Lux Capital, expanding to multiple states.
LAYOFF
Caregiver turnover hit 80%+; company cut 30% of corporate staff amid funding drought.
SHUTDOWN
HomeTeam ceased operations mid-2023 after failing to close Series C financing.
Full Analysis
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Documented cause
HomeTeam raised $54M to match home care aides with elderly clients via a tech platform. By 2022, labor shortages in home health aide markets crushed unit economics; caregiver turnover exceeded 80%. CEO Ari Mednikov failed to achieve sustainable margins as Medicaid reimbursement rates stagnated. The company laid off 30% of staff in early 2023 and shut down by mid-2023, unable to raise a Series C in a hostile funding environment.
Lesson
“Marketplace models in regulated care sectors must solve labor supply before scaling tech layers.”