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    HomeUncategorizedNotarize Signs off on 25% Staff Reduction, Admits Challenging Fundraising Environment

    Notarize Signs off on 25% Staff Reduction, Admits Challenging Fundraising Environment

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    ABOUT THIS COMPANY –

     The Boston-based startup Notarize, which provided the first online real estate closing procedure, announced a 25% workforce reduction last week.

    Co-Founder and CEO Pat Kinsel stated on June 15 on Twitter that Notarizes “let go of around 25% of our workforce today.” Numerous sources in the media put the number of layoffs at 110.

    Kinsel stated on Twitter, “We are incredibly proud of the team we’ve developed, and they are departing through no fault of their own – they are genuinely the finest of the best. “I will always be appreciative that I had the opportunity to work with them.”

    The business is “offering severance, support services, and avoiding the one-year vesting cliff,” according to Kinsel. As well as promising to publish the names of fired staff, he urged businesses to contact him directly if they had any openings.

    HOW DOES IT GROWTH?

    The COVID-19 epidemic raised the demand for remote notarization services, which was advantageous for Notarize, established in 2015. On a list of the 5,000 fastest-growing businesses in the country published by Inc. magazine in 2021, the company was rated 114th and the fourth-fastest-growing business in the Boston area.

    The company had previously disclosed receiving $130 million in a Series D fundraising round, which Canapi Ventures led. This venture capital firm specializes in supporting companies that leverage financial technology.

    After only 18 months in operation, Notarize reported in May 2019 that the company has exceeded the $1 billion milestone for real estate transactions. It claimed to have partnered with businesses that handled 40% of all real estate transactions in the United States at the time.

    Kinsel claimed in a Twitter thread from last week that the “Notarize team” had “made an enormous impact in the world over the past few years,” citing “39 laws amended, (more than) 1,000% growth, margins enhanced by 170 percent, and countless industries digitized for the first-time ever.”

    Nevertheless, Kinsel stated differently, “our regulatory triumphs and alliances have positioned the company in a fundamentally different position over the past two years, and our approach must shift. We must resolve these problems right away.

    He continued, “Additionally, the health of the economy and current international affairs is causing great uncertainty and exerting a lot of pressure on businesses worldwide. Many of these variables help Notarize’s business grow. However, They alter the company’s ability to attract future investment and require us to reassess the avenues we may explore and invest in.

    “We have made the tough choice to terminate a sizable number of roles across the firm in order to realign resources against our most crucial goals,” the statement continued.

    In his thread on Twitter, Kinsel also referred to a recent statement made by the venture capital company Sequoia Capital, which in May released a 52-slide presentation through Zoom with startup founders, warning of a “crucible moment” that would impair their capacity to raise money. Uncertainty was noted in the production as being caused by rising inflation, volatile financial markets, and current events.

    VISION-

    Kinsel suggested that it would be challenging to acquire additional financing in a statement released this week:

    The company’s position has changed significantly over the last two years due to our regulatory successes and alliances, and our strategy must adapt. We must start addressing these problems right away. Additionally, there is a lot of uncertainty and pressure on businesses worldwide due to the health of the economy and current international events. Even though many of these elements help Notarize’s business, they also alter the company’s availability for future funding and cause us to reassess what we can invest in and pursue. We did not take the choice to let go of highly valued staff lightly because we are saying goodbye to colleagues who have worked hard to establish this business and carry out our purpose for the benefit of our clients.


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