// STARTUP COMPARISON
Stayzilla vs Redfin (2022 crisis)
Stayzilla failed in 2017 due to Founder Chaos. Redfin (2022 crisis) failed in 2022 due to Unit Economics. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Stayzilla | 🔥 Redfin (2022 crisis) |
|---|---|---|
| Sector | Proptech | Proptech |
| Country | India | USA |
| Founded | 2005 | 2004 |
| Died | 2017 | 2022 |
| Raised | $33M | Public (RDFN) |
| Peak | $33M raised | $5B market cap |
| Primary Cause | Founder Chaos | Unit Economics |
// WHY EACH FAILED
Shutting down a startup does not end all legal obligations. In India, unpaid creditors can file criminal fraud charges under IPC 420. Understand the legal framework for winding down in your jurisdiction before you stop paying vendors.
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
Stayzilla triggers FOUNDER_CRIMINAL_LIABILITY — the simulation models startup shutdowns that leave creditors unpaid as carrying legal risk for founders in jurisdictions where creditor fraud statutes apply broadly. India's IPC Section 420 was the mechanism.
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