Opendoor (peak-bust)

iBuying pioneer raised $1.9B and went public at $18B SPAC valuation — 2022 mortgage rates hit 7%, lost $1.4B in Q3 2022 alone on inventory purchased at 2021 prices, $18B valuation collapsed to $700M by 2023

Years-long decline before final shutdown · Fatal mistake: Opendoor built iBuying — buying homes directly from sellers, renovating, and reselling. $1.9B raised. Went public via SPAC at $18B valuation December 2020. 2021 peak: $8B in home inventory. 2022: mortgage rates 3%→7%. Home values declined in most markets. Opendoor lost $1.4B in Q3 2022 alone as homes purchased at 2021 prices had to be sold below cost. Total 2022 losses: $1.35B. Laid off 18% in 2022. SPAC valuation of $18B → $700M market cap by 2023.