Home Service Startup Files Bankruptcy In Less Than 3 Years

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Startup companies came as a packaged deal with the tech boom in the last decade but the chance of them surviving over five years has dwindled. These innovative ideas that grow into startups have been meeting their end because of class action lawsuits that push to redefine their contractors as employees, which in turn drives up labor cost. The home repair startup Homejoy Inc has recently filed for bankruptcy a mere five months after posting on their blog that they would be shutting down their services.

The California based startup brought home and cleaning services to people via mobile app. Instead of booking random workers and hoping for the best Homejoy offered a way to browse home repair and cleaning services before booking an appointment. Initially the company raised $38 million in venture capital from big name investors like Google Ventures and First Round Capital. While the initial funding was met, the company stated in their July blog post that revenue issues and employee lawsuits are what lead to the closing of the company.

However this is not the case for all startup companies, some have flourished despite the low success rate of these newer and smaller companies. Handy Technologies which is a startup that provides similar services as Homejoy, was able to raise $50 million in funding back in November and has continued to expand their services. In total, the company has raised over $110 million in investment capital for their continued expansion. Not only does Handy offer highly recommended cleaning and home repair services they now can send someone to your home to assemble your newly bought Ikea furniture.

Handy was created after the Uber craze had exploded across the United States. Their general goal was to become the ‘Uber of the home repair world’ by offering a simple and easy way to find a home service worker or company. By creating an extensive employment process Handy only hires 3% of those interviewed and performs in-depth background checks. Currently they’re working on expanding to all major cities in the US and have opened up an office in London.


Reviews of the expected in the 2016 stock market

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Investors in the previous year placed great hopes in their investments throughout the half of year 2015. This was however cut short by the mini crash that took place between August and September. This brought forth growth worries and turned all the investors’ focus on the risks and uncertainties that were involved.

Investors sensing the same even as we usher in a new year, the stock market seems to have been brought to a halt. However, there still holds some hope for a prosperous new year. This will however be realistic after investors shift from risk to the worry side. This will arouse some great efforts increasing chances of good gains.
In the reviews, investors are further advised to focus on leading growth companies. These still maintain their demands in the market ignoring all the risks and uncertainties that may be involved in the market. There will also be need to bring in stocks that are safe in terms of market. This is due to the fact that people will develop attitudes and only demand for up to standard stock.
In 2015, the investor attitudes has turned to worries and this promises a better return potential. Hence, investing in the U.S. stocks is highly recommended as we approach end of this year.
From Dallas TX, James Dondero is the co-founder and president of Highland Capital Management. Currently Jim is mainly focused on operations and investments strategies in both retail and institutional products at the Highland investments. So far, he has gained over 30 years of experience and serves as one of the Collateralized Loan Obligation pioneers.
James Dondero graduated from University of Virginia where he majored in the finance and accounting sector. Further, he got all rights reserved to use the Chartered Financial Analyst designation being a Certified Management Accountant.
In his field of operation, the funds relating to him have received many awards and accolades and this has greatly helped him develop in his career. Currently, Jim is the chairman of the Board for Nexbank, CCS Medical Corporation and Cornerstone Healthcare. He is also in the board of directors for American Banknote and MGM studios. He has also worked with other organizations such as Protective Life’s GIC subsidiary where he served as the chief investment officer prior to joining Highland investments.
Below is a link to the original release.