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London PropTech Startup Tract Closes After Failing to Gain Market Traction

Proptech

Business Honor
07 April, 2025

Founders reflect on hard lessons, missteps, and the realities of building startups.

Tract, which is a startup proptech in London that started in 2023, is now closed down having failed to gather momentum in the UK property landscape. The venture, which wished to make home development easier, created a virtual platform that had the ability to identify land apt for construction as well as mechanize the acquisition of planning reports.

Even with support from high-profile venture capital investors Concept Ventures and Ada Ventures, Tract did not live up to growth expectations. Tract founders Jamie Rumbelow and Henry Dashwood reimbursed cash to investors after it ceased business activity last month.

The startup's core mission-simplifying the process of creating housing-aligned with proptech's general mission of leveraging digital technology to overcome inefficiencies in real estate. The founders did acknowledge, however, a number of errors that resulted in the failure of Tract, such as an overestimation of the size and readiness of the UK market for their product.

They recognized that the business model was perhaps more tailored to other funding models than traditional venture capital. Further, the team focused on product development more than business growth and customer acquisition-a priority that eventually brought their momentum to a halt.

Rumbelow and Dashwood also attributed decisions that deflected funds away from the highest priority. These were unnecessary spending on branding, office amenities, overseas travel, and recruitment. Telecommuting also reduced productivity as the team had a hard time keeping pace and coherence.

In an open reflection on Tract's site, the founders gave a frank assessment of their decisions in which they described certain moves as "driven by vanity and stupidity."

Tract's shutting down is to bring out the challenges of scaling up a proptech company in a traditional and mature economy such as the UK. While shutting down the startup is the end of the road for it, it sends out a message to proptech founders in the emerging sector.