New York-based real estate startup Cadre is struggling to raise venture funding, sources informed The Information.
The firm is having difficulty raising VC funding as investors have
reduced their capital deployment into the real estate sector due to
rising interest rates, slumping home and office sales, a rising number
of uninhabited office spaces, and high cash burn.
- According to sources, the firm was in talks with investors to raise convertible debt with a $100M valuation ceiling.
- Another
source claimed that the firm was also in talks to raise equity funding
at a $155M valuation, representing an 80% drop over its peak valuation.
- Six
years ago, the firm had raised funding from Andreessen Horowitz, Thrive
Capital, Founders Fund, and Jack Ma at a $800M valuation.
- Cadre
spokesperson Patrick Lovett dismissed the claims, adding, "We believe
our proven track record, which stands at 27.6% net [internal rate of
return] and over $460 [million] in gross distributions, speaks to our
continued ability to provide compelling value to our clients and
investors."
- Cadre, co-founded by Jared Kushner and former Blackstone executive Ryan Williams, raked in $30M in revenue last year.
