What the business is
EasyKnock offers 'sell and stay' for homeowners; Onder sold subscription home-maintenance services such as HVAC cleaning, plumbing and gutters.
The bet
That selling maintenance to homeowners who sell-and-stay with EasyKnock makes a nationwide property-maintenance platform.
Starting capital
EasyKnock raised $57M in 2022; Onder had a 2021 pre-seed led by Rackhouse Ventures (amount not disclosed)
How it started
New York's EasyKnock, founded in 2016, offers a 'sell and stay' program in which homeowners sell their homes, stay as tenants and can later repurchase them. Onder, founded in 2021 by ex-Expedia product executive David Krieger, sold a subscription service in which technicians handled interior and exterior maintenance.
What happened
EasyKnock bought home-buying startup Ribbon in May 2023. Onder's CEO said it had grown consistently since the start of 2023, but venture capital remained a headwind with very little margin for error, so he and his advisors explored M&A.
How it ended up
EasyKnock acquired Onder on 11 September 2023 for undisclosed terms; Krieger became EasyKnock's chief product strategy officer, and Onder's team of fewer than 10 joined him.
What has to be true
GeekWire noted Onder was among a growing number of early-stage companies pursuing M&A amid a slowdown in venture capital funding.
Onder's CEO said it ran with little margin for error, so an acquisition protected investors, employees and customers.
The deal lets EasyKnock offer Onder's maintenance services to its customers, part of its stated goal of a nationwide property maintenance platform.
What can be applied
When venture money tightens, a small company with real customers can be worth more to a bigger neighbor as a product line than as a standalone startup.
Aftermath
As of 11 September 2023, there would be no interruption to Onder's services for its 100-plus homes, and EasyKnock, which raised $57M in 2022, said it was building a nationwide maintenance platform. GeekWire noted that US real estate transaction volume was at its lowest in at least a decade, with only 1% of homes changing hands in the first half of 2023.
FOLLOW THE EVIDENCE