HousingWire reports that the company chief executive, Nick Stamos, announced the company’s closure in an open letter posted on its website.
“Startups are hard and simplifying the highly regulated, complex business of mortgages is even harder. I believed we had overcome the biggest hurdles, but unfortunately, we didn’t. Today, we made the difficult decision to wind down Sindeo,” Stamos wrote.
However, the company did not go into further detail about its reasons for the shutdown.
Stamos co-founded Sindeo with Ori Zohar in 2013. The pair was able to secure $15 million in seed capital. In 2016, Sindeo hired former Fannie Mae executive Deepak Kumar as chief operating officer and chief finance officer to boost its mortgage business.
“I am simultaneously devastated and, as well as incredibly proud. While Sindeo as a startup has failed, our people did not,” Stamos said.
A “majority of the staff and leadership team” lost their jobs, while “a very small team” will be retained to transition existing customers to close their loans, Stamos said.
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San Francisco-based mortgage-finance technology startup Sindeo has announced that it is shutting down after four years of operations.