ZombieReal Estate

What Happened to Porch Group?

Ticker: PRCHSPAC Year: 2020Merger: 2020

Return

-75.0%

Current Price

$2.5

Peak Price

$30

Trust Size

$200M

Summary

Home services and insurance platform. Acquired HOA.com and insurance companies. Crashed 92% as insurance losses and rising interest rates crushed the housing-adjacent business.

What Happened

Porch merged with PropTech Investment Corp II in December 2020. The company pivoted from home services marketplace to homeowners insurance through acquisitions. It aimed to be the one-stop-shop for everything home-related. But insurance underwriting losses were enormous — especially with climate disasters. Revenue grew to $400M+ but losses were even larger. Stock crashed from $30 to $2.50.

Key People

Matt EhrlichmanCEO & Founder— Serial entrepreneur, pivoted from services to insurance

Timeline

2020-07

SPAC merger announced

2020-12

Merger completed

2021-02

Stock peaks at $30

2022-01

Insurance losses mount

2024-01

Stock at $2.50, restructuring

Risk Indicators

⚖ïļ Class Action Lawsuit