// STARTUP COMPARISON
LaHaus vs Opendoor (2022 crisis)
LaHaus failed in 2022 due to Unit Economics. Opendoor (2022 crisis) failed in 2022 due to Bad Timing. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 LaHaus | 🔥 Opendoor (2022 crisis) |
|---|---|---|
| Sector | Proptech | Proptech |
| Country | Colombia | USA |
| Founded | 2017 | 2014 |
| Died | 2022 | 2022 |
| Raised | $107M | $1.9B |
| Peak | $107M raised | $18B valuation |
| Primary Cause | Unit Economics | Bad Timing |
// WHY EACH FAILED
🔥 LaHaus
Unit Economics
LaHaus built a technology-enabled real estate brokerage for Latin America, raising $107M and operating in Colombia and Mexico. In 2022 rising interest rates triggered a real estate market slowdown across the region, significantly reducing transaction volumes. LaHaus laid off 40% of its workforce in 2022 and retrenched to its core Colombian market, abandoning its multi-country expansion.
// LESSON
Real estate transaction businesses are highly correlated with mortgage rates. A 2x increase in rates can reduce transaction volume 40-60%. Build 18 months of reserves for a rate shock scenario before scaling headcount.
Real estate transaction businesses are highly correlated with mortgage rates. A 2x increase in rates can reduce transaction volume 40-60%. Build 18 months of reserves for a rate shock scenario before scaling headcount.
🔥 Opendoor (2022 crisis)
Bad Timing
Opendoor pioneered iBuying — purchasing homes directly, making improvements, and reselling. The model requires buying low and selling higher in a rising market. When the Fed began aggressive rate rises in 2022, mortgage rates doubled from 3% to 6%+, home prices fell, and Opendoor was stuck with inventory purchased at peak prices. Q3 2022 saw a $928M net loss. The stock fell 90%+ from peak.
// LESSON
iBuying is a leveraged real estate bet. When rates double, the bet loses on both sides: the homes you own are worth less AND the pool of buyers who can afford to buy them shrinks. The model cannot survive a rate doubling with a 90-day inventory holding.
iBuying is a leveraged real estate bet. When rates double, the bet loses on both sides: the homes you own are worth less AND the pool of buyers who can afford to buy them shrinks. The model cannot survive a rate doubling with a 90-day inventory holding.
// EXPLORE FURTHER