Total amount raised
$1.2 Billions
Latest funding date
10/1/2021
Location
Divvy Homes has successfully raised significant funding over multiple rounds, achieving a valuation of $1 billion through its acquisition by Brookfield Properties. The platform offers a tech-enabled solution for rent-to-own home purchases, making homeownership more accessible.
Keep reading to explore the intricacies of Divvy Homes' fundraising journey and the investors backing this innovative platform.
What Is Divvy Homes?
Divvy Homes, founded in 2017, is a tech-enabled real estate platform based in San Francisco, California. The company was established by Adena Hefets, Alex Klarfeld, Brian Ma, and Nicholas Clark.
Specializing in rent-to-own home purchases, Divvy Homes aims to bridge the housing affordability gap by allowing customers to rent homes with an option to buy. The platform also offers programs to improve credit scores and partnerships with real estate agents.
With a team of 101-250 employees, Divvy Homes continues to innovate in the real estate market, making homeownership more accessible for many.
How Much Funding Has Divvy Homes Raised?
- Seed Round
- Amount Raised: $7M
- Date: January 2018
- Lead Investors: Caffeinated Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the company's operations and develop its rent-to-own platform.
- Series A
- Amount Raised: $10M
- Date: October 2018
- Lead Investors: Andreessen Horowitz
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the platform's reach and enhance its technology.
- Debt Financing
- Amount Raised: $120M
- Date: October 2018
- Lead Investors: Atalaya Capital, Cross River Bank
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To increase the company's purchasing power for acquiring homes.
- Series B
- Amount Raised: $43M
- Date: September 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enter new markets.
- Series C
- Amount Raised: $110M
- Date: February 2021
- Lead Investors: Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support rapid growth and expand market presence.
- Series D
- Amount Raised: $200M
- Date: August 2021
- Lead Investors: Caffeinated Capital, Tiger Global Management
- Valuation at Round: $2 billion
- Motivation Behind the Round: To further scale operations and enhance customer experience.
- Debt Financing
- Amount Raised: $735M
- Date: October 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To significantly boost the company's purchasing power for acquiring homes.
Total Amount Raised: $1.225 billion. Current Valuation: $2 billion.
Key Investors
- Andreessen Horowitz
- Details: Andreessen Horowitz is a private venture capital firm that invests in both early-stage startups and established growth companies. Founded in 2009, it is based in Menlo Park, California.
- Investment Focus Areas: Technology, software, consumer, enterprise sectors.
- Notable Investments: Facebook, Airbnb, Slack.
- Tiger Global Management
- Details: Tiger Global Management is a global investment firm that focuses on private and public companies in the technology sector. It was founded in 2001 and is headquartered in New York City.
- Investment Focus Areas: Internet, software, consumer, financial technology sectors.
- Notable Investments: Spotify, Stripe, ByteDance.
- Caffeinated Capital
- Details: Caffeinated Capital is a venture capital firm that invests in early-stage technology companies. It was founded by Raymond Tonsing and is based in San Francisco, California.
- Investment Focus Areas: Early-stage technology companies.
- Notable Investments: Airtable, Brex.
- GGV Capital
- Details: GGV Capital is a global venture capital firm that invests in local founders. Established in 2000, it has offices in Silicon Valley, Shanghai, and Beijing.
- Investment Focus Areas: Technology, consumer, enterprise sectors.
- Notable Investments: Alibaba, Square, Slack.
- GIC
- Details: GIC is a global investment firm established to manage Singapore's foreign reserves. It was founded in 1981 and is headquartered in Singapore.
- Investment Focus Areas: Real estate, equities, fixed income.
- Notable Investments: Alibaba, Airbnb, Uber.
What's Next for Divvy Homes?
Divvy Homes stands at the cusp of significant growth opportunities. With plans to expand into new markets like Georgia, Texas, and Florida, the company aims to bring its rent-to-own model to more families. The recent $200 million funding round, which values the company at $2 billion, underscores the vast potential ahead.
Future fundraising could see Divvy Homes pursuing additional rounds or even an IPO as it scales. However, challenges such as market competition and managing rapid growth loom large. Navigating these hurdles will be crucial for sustaining their momentum in the evolving real estate landscape.
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