// startup autopsy

Latch

Smart apartment access system SPAC'd at $1.56B — interest rates killed new apartment construction, which was its only real market

unit economicsSlow Death

Years-long decline before final shutdown · Fatal mistake: Latch built smart access systems for multifamily apartments. SPAC merger with TS Innovation Acquisitions Corp 2021 at $1.56B valuation. Post-SPAC cash used to scale hardware + software. Interest rate rise 2022-2023 collapsed new apartment construction (primary market). NASDAQ delisting warning 2023. Laid off 60% of staff. Rebranded as Door and restructured.

Founded	2014
Closed	2023
Country	USA
Sector	Proptech
Founder	Luke Schoenfelder

// the model, blind

Evaluating only Latch’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

2014

FOUNDING

2021

FUNDING

2022

CRISIS

2023

SHUTDOWN

Full Analysis

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Documented cause

Latch built smart access for new apartments. SPAC at $1.56B 2021. Rate cycle 2022-2023 collapsed new construction starts. Pipeline evaporated. NASDAQ delisting warning. Laid off 60%.

Lesson

“Proptech products dependent on new construction must model interest rate cycle scenarios — the developer specification channel disappears when construction financing becomes unviable at 6-8% rates.”

Failure anatomy

Collapse type

Slow Death

🐌 LOW

Hype cycle

Peak

Moat type

Technology

Fatal mistake

Latch built smart access systems for multifamily apartments. SPAC merger with TS Innovation Acquisitions Corp 2021 at $1.56B valuation. Post-SPAC cash used to scale hardware + software. Interest rate rise 2022-2023 collapsed new apartment construction (primary market). NASDAQ delisting warning 2023. Laid off 60% of staff. Rebranded as Door and restructured.