Layoffs at LeaseLock

Based on information obtained by Coverager, LeaseLock, a startup offering an alternative to security deposits, has made cuts in December that resulted in an 18% workforce reduction.

In addition, co-founders Derek Merrill and Reichen Kuhl are no longer CEO and president of the company, respectively. Based on our sources, who asked to remain anonymous, these decisions were initiated by the board. According to the PR team of LeaseLock, Kuhl had been planning to move into the chair of the board role and Merrill mutually planned his transition with the board.

LeaseLock has also lost several senior employees according to LinkedIn data – Ian McIntosh (SVP enterprise sales), Mychelle Burns – Johnston (VP enterprise accounts), and David Hemry (VP claims).

The layoffs will help LeaseLock, which is not profitable, extend its runway through 2024. The startup was working with JPMorgan to find a buyer or secure a new round of funding, but market conditions made it difficult. To date, LeaseLock publicly disclosed ~$63.5 million in funding.

Founded in 2016, LeaseLock offers an alternative to security deposits with a product that covers owners/operators if a renter misses rent payments or causes property damage. The insurer behind the product is QBE.