Friday, 31 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Tech and Science > Some shareholders of a16z-backed Divvy Homes may not see a dime from $1B sale
Tech and Science

Some shareholders of a16z-backed Divvy Homes may not see a dime from $1B sale

Last updated: January 22, 2025 6:16 pm
Share
Some shareholders of a16z-backed Divvy Homes may not see a dime from B sale
SHARE

The Rollercoaster Journey of Divvy Homes: A $1 Billion Acquisition Leaves Shareholders Without a Payout

Divvy Homes, a rent-to-own startup, recently announced its acquisition by Brookfield Properties for $1 billion, marking a significant milestone in the proptech industry. However, sources familiar with the deal suggest that some shareholders may not receive any payout from the transaction.

Founded in 2016 in San Francisco, Divvy Homes had garnered substantial investments totaling over $700 million from prominent investors like Tiger Global Management, GGV Capital, and Andreessen Horowitz (a16z). By 2021, the company had reached a valuation of $2.3 billion, showcasing its rapid growth and market potential.

Despite being acquired for half of its peak valuation, the $1 billion deal with Brookfield Properties signifies a success story amidst a backdrop of shutdowns and bankruptcies in the industry. However, a letter from Divvy CEO and co-founder Adena Hefets reveals that common shareholders and holders of the Series FF preferred stock may not receive any consideration after the transaction.

The sale of Divvy’s assets to Brookfield Properties will involve repaying debts, transaction costs, and preferences to preferred shareholders, leaving some equity holders with no proceeds from the acquisition. This includes the founders of the company, highlighting the challenges faced by stakeholders in the transition.

Operating on a rent-to-own model, Divvy Homes aimed to help renters transition into homeownership by renting out properties to them for a period of three years while they saved up to purchase the home. However, the company faced setbacks when mortgage interest rates surged in 2022, leading to multiple rounds of layoffs and financial strains.

See also  Ransomware gang claims responsibility for Kettering Health hack

Despite the challenges, Hefets explained in the letter that the decision to sell was made after careful consideration of strategic alternatives and market conditions. The move was deemed necessary to return capital to shareholders and navigate the evolving landscape of the industry.

Looking ahead to 2025, Divvy Homes saw selling its home portfolio as the best course of action, despite the disappointing financial outcome. Hefets expressed pride in the company’s impact on customers’ lives and the mission it had pursued over the years.

As the proptech industry continues to evolve, the acquisition of Divvy Homes by Brookfield Properties serves as a testament to the dynamic nature of the market and the challenges faced by emerging startups. While some shareholders may not receive a payout from the deal, the transaction marks a significant milestone in Divvy’s journey and the broader landscape of the proptech sector.

TAGGED:a16zbackeddimeDivvyHomessaleshareholders
Share This Article
Twitter Email Copy Link Print
Previous Article Prehabilitation shows promise in improving health, reducing complications after surgery Prehabilitation shows promise in improving health, reducing complications after surgery
Next Article Jo Baer, Painter of “Radical Figuration,” Dies at 95 Jo Baer, Painter of “Radical Figuration,” Dies at 95
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

NHL Star Connor McDavid and Wife Lauren’s Relationship Timeline

Edmonton Oilers star Connor McDavid and his wife Lauren Kyle McDavid have been setting relationship…

June 4, 2025

Gold Set for Seventh Weekly Gain as US Shutdown Clouds Rate Path

(Bloomberg) -- Gold prices increased on Friday, marking a seventh consecutive weekly rise as anxiety…

October 5, 2025

Federal Judge Orders Trump Admin to Halt Immigration Operations Without Probable Cause in California

This article was originally published by The Epoch Times: Federal Judge Orders Trump Admin to…

August 8, 2025

Ghost Particles Could Boost Gold Production in Neutron Star Collisions : ScienceAlert

Neutrinos play a crucial role in the transformation of neutron stars during a merger event,…

September 22, 2025

One Gesture Suggests Anti-Trump Dissatisfaction Is Brewing At The FBI

PoliticusUSA is your reliable independent news source, but we need your support. Consider becoming a…

August 8, 2025

You Might Also Like

The Interplanetary Race to Study Interstellar Comet 3I/ATLAS
Tech and Science

The Interplanetary Race to Study Interstellar Comet 3I/ATLAS

October 31, 2025
SOC teams face 51-second breach reality—Manual response times are officially dead
Tech and Science

SOC teams face 51-second breach reality—Manual response times are officially dead

October 31, 2025
The New Scientist Book Club’s verdict on Our Brains, Our Selves: A mix of praise and misgivings
Tech and Science

The New Scientist Book Club’s verdict on Our Brains, Our Selves: A mix of praise and misgivings

October 31, 2025
Tech Advisor December 2025 Digital Magazine
Tech and Science

Tech Advisor December 2025 Digital Magazine

October 31, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?