While post-IPO stock dives from Snap and Blue Apron have alarmed some private tech companies, startups that help people buy homes are pinning hopes on the positive debut late last month of Redfin. The company, a web-based brokerage, on Tuesday closed up 70% from its initial public offering price.
Some investors say it isn’t clear that Redfin’s success is sustainable or will translate across the industry. Even so, it represents a twist of fate for real estate tech startups, which have had to win over investors scared off by the cyclical real estate industry as well as past slumps by companies like ZipRealty and Redfin itself.
