Opendoor co-founder Eric Wu is stepping down from the real estate tech company, as per an SEC filing. After ten years, Wu expressed his desire to return to his startup roots, stating, “I am called to get back to my startup roots and create and build again. I’m humbled by this accomplishment and grateful for all my teammates who helped shape the product, culture, and company.” Despite stepping down, Wu will continue to serve as an advisor to the company and the board. Wu has also been an active investor, with investments in numerous companies, including Airtable, Scribe, Roofstock, and the now-defunct Zeus Living.
Key Takeaway
Opendoor co-founder Eric Wu has announced his departure from the real estate tech company to re-engage with his startup roots, emphasizing the challenges in the current real estate market and a trend of founders returning to early-stage company building.
Transition and Challenges
Wu had gradually reduced his executive responsibilities at Opendoor, culminating in his announcement last December to step down from the role of CEO and serve as Opendoor’s president of marketplace. The real estate market has faced challenges, with soaring mortgage interest rates, making it difficult for individuals to purchase homes. In response to the tough market conditions, Opendoor announced a reduction in its workforce, letting go of about 550 people, or 18% of the company, across all functions. Wu acknowledged that the company was navigating “one of the most challenging real estate markets in 40 years.”
Company Background and Founder Departures
Opendoor, founded by Eric Wu and Keith Rabois, went public in late December 2020 after completing its planned merger with the SPAC Social Capital Hedosophia Holdings II. The company had raised approximately $1.3 billion in equity funding and nearly $3 billion in debt financing. Notably, this week has seen several founder departures, including Credit Karma co-founder Nichole Mustard and Lattice co-founder Jack Altman, reflecting a trend of founders returning to the early stages of building new companies.
