The porch gets four start-ups as they deepen losses


Porch CEO Matt Ehrlichman (iStock)

Porch CEO Matt Ehrlichman (iStock)

The porch doesn’t waste time on the acquisition front: Just three weeks after it became public, the launch of domestic services won four companies for $ 122 million.

The Seattle-based company said it had entered into an agreement to buy Texas insurance company Homeowners of America for $ 100 million in cash and stock, Geekwire said. It will also buy V12, a marketing platform, for $ 22 million in cash, plus two smaller startups – PalmTech and iRoofing – for an undisclosed amount.

Porch appeared on the stock exchange last year after merging with Proptech Acquisition Corp., a blank check firm founded by Abu Dhabi Investment Authority veterans Tom Hennessy and Joe Beck. The deal helped Porch raise $ 322 million and its valuation rose to more than $ 1 billion on the first day of trading.

The cash inflow came just in time: The companies said that the recurring losses raised “fundamental doubts” about Porch’s ability to continue, according to its IPO submission.

Porch’s preliminary results for 2020, released on Thursday, predict a net loss of between $ 53 million and $ 55 million, according to Geekwire – 20 million more than previously estimated. Executives attributed higher losses to sales and marketing and R&D spending.

The veranda projects revenue of $ 170 million by 2021, compared to the previous projection of $ 120 million. He expects to have $ 72 million in revenue by 2020.

[Geekwire] – EB Solomont

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