Total amount raised
$1.2 Billion
Latest funding date
10/1/2021
Location
Divvy Homes has successfully navigated through 7 funding rounds, attracting a total of 17 investors, including notable names like Employee Stock Option Fund and Andreessen Horowitz. The latest funding was raised through a Debt Financing round, showcasing the company's ability to secure diverse financial backing.
Keep reading to explore the intricacies of Divvy Homes' fundraising journey and the investors backing this innovative rent-to-own home purchase platform.
What Is Divvy Homes?
Divvy Homes is a tech-enabled real estate platform that facilitates rent-to-own home purchases. Based in San Francisco, California, the company operates as a private entity and has been acquired by Brookfield Properties.
Operating within the financial services, real estate, and rental property industries, Divvy Homes employs between 101 and 250 people. The company offers a seamless path to homeownership, ensuring that getting started is free and won't impact the user's credit score.
How Much Funding Has Divvy Homes Raised?
- Seed Round
- Amount Raised: USD 7,000,000
- 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: USD 10,000,000
- Date: October 2018
- Lead Investors: Andreessen Horowitz
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand market reach and enhance the platform's features.
- Debt Financing
- Amount Raised: USD 120,000,000
- Date: October 2018
- Lead Investors: Atalaya Capital, Cross River Bank
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the purchase of more homes for the rent-to-own program.
- Series B
- Amount Raised: USD 43,000,000
- 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: USD 110,000,000
- Date: February 2021
- Lead Investors: Tiger Global Management
- Valuation at Round: USD 490,000,000
- Motivation Behind the Round: To accelerate growth and meet increasing demand for the rent-to-own model.
- Series D
- Amount Raised: USD 200,000,000
- Date: August 2021
- Lead Investors: Tiger Global Management, Caffeinated Capital
- Valuation at Round: USD 2,000,000,000
- Motivation Behind the Round: To support significant growth and expand the company's market presence.
- Debt Financing
- Amount Raised: USD 735,000,000
- Date: October 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further support home purchases and expand the rent-to-own program.
Total Amount Raised: USD 1,225,000,000. Current Valuation: USD 2,000,000,000.
Key Investors
- Tiger Global Management
- Details: Tiger Global Management is a global investment firm that focuses on private and public companies in the internet, software, consumer, and financial technology sectors. They have a strong track record of investing in high-growth companies.
- Investment Focus Areas: Technology, consumer, industrial sectors
- Notable Investments: Facebook, LinkedIn, Spotify, Stripe
- Caffeinated Capital
- Details: Caffeinated Capital is a venture capital firm that invests in early-stage technology companies. They are known for their hands-on approach and support for startups.
- Investment Focus Areas: Early-stage technology companies
- Notable Investments: Airtable, Brex, Notion
- Andreessen Horowitz
- Details: Andreessen Horowitz is a private venture capital firm that invests in both early-stage startups and established growth companies. They have a diverse portfolio and are influential in the tech industry.
- Investment Focus Areas: Technology companies across various stages
- Notable Investments: Facebook, Airbnb, Lyft, Slack
- GGV Capital
- Details: GGV Capital is a global venture capital firm that invests in local founders. They focus on technology companies in the U.S. and China.
- Investment Focus Areas: Technology companies, particularly those with a global reach
- Notable Investments: Alibaba, Square, Peloton
- GIC
- Details: GIC is a sovereign wealth fund established by the Government of Singapore to manage its foreign reserves. They invest globally across various asset classes.
- Investment Focus Areas: Equities, fixed income, real estate, private equity
- Notable Investments: Ant Financial, Airbnb, ByteDance
What's Next for Divvy Homes?
Divvy Homes stands at the cusp of significant growth opportunities, particularly in expanding its market presence in states like Georgia, Texas, and Florida. The company aims to help over 100,000 families become homeowners in the next decade, leveraging the current homebuying boom and increasing interest in tech-enabled real estate solutions. With a valuation of $2 billion and strong backing from major investors, Divvy Homes is well-positioned to attract additional funding to support its ambitious goals.
However, the path forward is not without challenges. The company must navigate competition from other startups in the homebuying space and manage market fluctuations that could impact affordability. Regulatory hurdles and ensuring the legitimacy of alternative home financing options also pose potential obstacles. Despite these challenges, Divvy Homes' innovative approach and robust investor support suggest a promising future in the evolving real estate market.
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