// STARTUP COMPARISON
QuintoAndar (2022 crisis) vs Redfin (2022 crisis)
QuintoAndar (2022 crisis) failed in 2022 due to Unit Economics. Redfin (2022 crisis) failed in 2022 due to Unit Economics. Both failed for the same reason — Unit Economics.
| METRIC | 🔥 QuintoAndar (2022 crisis) | 🔥 Redfin (2022 crisis) |
|---|---|---|
| Sector | Proptech | Proptech |
| Country | Brazil | USA |
| Founded | 2013 | 2004 |
| Died | 2022 | 2022 |
| Raised | $780M | Public (RDFN) |
| Peak | $5.1B valuation | $5B market cap |
| Primary Cause | Unit Economics | Unit Economics |
// WHY EACH FAILED
Real estate marketplaces are macro-correlated even when they don't hold inventory. Rate rises slow transaction velocity, reduce listings, and compress take rates simultaneously. The valuation that justified your headcount was built on a specific rate environment.
Real estate brokerage models with fixed agent costs have higher operating leverage than commission-only models. In a rate-driven transaction volume decline, fixed costs create structural losses that commission models avoid. Match your cost structure to your revenue variability.
// IN THE SIMULATION
QuintoAndar triggers RENTAL_MARKET_RATE_SENSITIVITY — the simulation models rental marketplaces as indirectly rate-sensitive: rising mortgage rates reduce rental supply (owners hold rather than rent) and reduce transaction velocity as the overall property market slows.
Redfin triggers FIXED_COST_AGENT_MODEL_RATE_SHOCK — the simulation models W-2 agent real estate companies as having 2x the rate sensitivity of commission-only models. Fixed costs cannot flex with transaction volume; commission costs can.
// EXPLORE FURTHER