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

Divi Homes Acquisition Overview

The acquisition of Divi Homes, a rent-to-own startup, by Brookfield for $1 billion marked a significant event in the property technology sector. Despite the deal valuing Divi at half of its peak valuation of $2.3 billion in 2021, it reflects the tumultuous journey the prop tech industry has faced, with many startups experiencing shutdowns and bankruptcies. However, the acquisition leaves some shareholders empty-handed, as noted in a letter from Divi's CEO, which indicated that after repaying debts and transaction costs, common shareholders would receive no payout. This emphasizes the challenging nature of the current market conditions, particularly for investors expecting returns in a volatile landscape and showcasing the rollercoaster trajectory Divi has endured since its inception in 2016.