Online services firm Homejoy will close July 31, the company announced in a blog post. Homejoy’s online platform matches clients with home service workers such as housecleaners and handymen. The company had announced $38 million in funding back in December 2013.

Tech news site Re/code quoted co-founder and CEO Adora Cheung as saying the “deciding factor” was  four lawsuits it was fighting over whether its workers should be classified as employees or independent contractors. None of them were class actions yet, but they made fundraising that much harder, Re/code reported.

Siblings Adora and Aaron Cheung launched the firm in the San Francisco Bay Area in 2012.

“Although we succeeded in many ways, we also faced obstacles,” Adora Cheung wrote in the post. “There are still many unresolved challenges in the home services space. We gave it our all, but regretfully, we have made the difficult decision to cease operations.”

Homejoy operates in 35 cities in the US, Canada, UK, Germany and France.