TechCrunch Startup News Some shareholders of a16z-backed Divvy Homes may not see a dime from $1B sale
Jan 27, 2025
The recent $1 billion acquisition of Divvy Homes has left some shareholders facing disappointment. The show dives into the rollercoaster journey of Divvy, highlighting significant valuation challenges in the volatile proptech industry. It explores the tough decisions that shaped both the sale and the futures of those involved. Listeners get an inside look at the complexities of the startup world and the stark realities of financial outcomes in high-stakes deals.
AI Snips
Chapters
Transcript
Episode notes
Proptech Rollercoaster
- Divvy Homes' sale highlights the volatile proptech market.
- While considered a win given recent industry downturns, some investors will receive nothing.
Divvy Homes Acquisition
- Rent-to-own startup Divvy Homes, backed by a16z and others, is being acquired for $1 billion.
- This is only half its peak valuation and leaves some shareholders with no payout.
Divvy Homes Business Model
- Divvy Homes' business model involved buying homes for renters and renting them back for three years.
- Rising mortgage interest rates in 2022 caused difficulties, leading to layoffs and the eventual sale.