Tract, the AI-powered proptech startup which hoped to solve the UK’s housing crisis, has shut down.
Founded in 2023, London-based Tract previously raised an undisclosed sum from early-stage VC firms Ada Ventures and Concept Ventures. The company sought to speed up the housebuilding process in Britain, using AI to identify optimal building sites and compile the documents needed to apply for planning permission.
But on Thursday, cofounders Jamie Rumbelow and Henry Dashwood published a lengthy blog post on the company’s website, revealing the company had ceased operations and they intended to return investors’ money.
“We want to stress from the start that the ultimate failure of the company lies with us. Some issues were within our control and some were beyond it,” they wrote.
Offering their experience as a case study for other founders, Rumbelow and Dashwood detailed how systemic issues in the UK housing market, flawed assumptions and unforced errors paved the way for Tract’s eventual shutdown.
The pair said they overspent on non-essentials like the company website, contractors and “a trip to America”, Rumbelow noted: “This is the thing I’m most angry with myself about. It smacks of vanity and stupidity, and I should have held myself to a higher standard.”
Moving on to advice for other founders trying to keep their company afloat, the pair detailed five key pieces of advice: get to America, choose your market wisely, stay lean, be aggressively commercial and test your hypotheses.
“We want to tell the story as matter-of-factly as possible,” they wrote.
“Most importantly, we’re extremely grateful to everyone who supported us over the last couple of years, in money and in time.”
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