Airbnb-backed actual property startup Zeus Dwelling winding down operations

Zeus Living, a San Francisco-based property management startup that raised $150 million from tech investors and was backed by Airbnb, is reportedly “winding down operations.”

The company, which directly manages the homes and apartments it sublets on its site for extended stays of 30 days or more to corporate employees, relocated workers and anyone looking for the flexibility to move around, is “struggling financially” and can no longer guarantee payments, according to an email to landlords obtained by the Information.

Zeus Living was founded in 2015 in San Francisco, with its headquarters in the Dogpatch neighborhood, and offers services in more than 100 U.S. cities through its website and short-term rental platforms like Airbnb. The company was named one of the Bay Area’s top workplaces of 2022 by the Chronicle.

Unlike Airbnb, Zeus Living designs, furnishes, lists, markets and books the properties it manages and acts as a liaison for tenants while driving revenue for homeowners (“You will never receive an urgent call at 2 am about a plumbing issue — we have it covered,” the website promises).  

The company prospered during the early days of the COVID-19 pandemic as more employees had the flexibility to work from home and live in different locations.

The startup raised around $150 million, including a $55 million Series B round with participation from Airbnb in December 2019 and a $55 million round in October 2021. Zeus Living achieved an estimated money valuation of $269 million last year, per PitchBook, with additional backing from Comcast, Bowery and Initialized Capital.

However, the shifting economy and rising interest rates have changed the picture. Zeus Living cut approximately 46% of its 140-person workforce in October 2022, including full-time and part-time workers at its San Francisco headquarters and remote locations. 

“Like many companies in our industry, we are not immune to the effects of market volatility, inflation, war, and the possibility of a recession,” a spokesperson said at the time. “We’re adapting to the current environment by expediting our path to profitability and sustainably expanding our portfolio of managed homes. We have had to make proactive adjustments, including recent staffing changes across the organization.”

An inquiry to the company on Wednesday about its plans was not immediately returned.

Reach Aidin Vaziri: avaziri@sfchronicle.com