Veev on the Verge of Shutdown: A Story of Unfulfilled Promises
A Real Estate Developer Turned Tech-Enabled Homebuilder on the Brink of Collapse
Real estate developer turned tech-enabled homebuilder Veev, which reached unicorn status last year, is reportedly on the verge of shutting down. According to multiple reports, the company has had to cancel its capital-raising initiative, leading to a severe financial crisis.
$400 Million in Funding Secured Just Six Months Ago
In March 2022, Veev secured $400 million in fresh funding as part of its larger $600 million raise. The funding round was led by Bond and included participation from notable investors such as LenX (formerly Lennar Ventures), Zeev Ventures, Fifth Wall Climate Tech, and JLL Spark Global Ventures.
A Brief History of Veev
Founded in 2008, Veev Group started its life as a traditional real estate developer and asset manager. During its time developing properties, the company found innovative ways to improve the building process. CEO and co-founder Amit Haller attributed this success to the company’s focus on prefab capabilities, which it began exploring in 2017.
Pivoting to Prefabrication
By 2018, Veev formally pivoted to become a vertically integrated developer focused on building innovation. This marked a significant shift in the company’s approach to construction and prefabrication. The name change from Dragonfly Group to Veev in 2019 further solidified this new direction.
A Comparison with Katerra
In an interview with TechCrunch in March 2022, executives appeared undeterred by the demise of Katerra, a SoftBank-backed construction tech startup that essentially crashed and burned after raising over $2 billion in funding. Haller noted that Veev had taken a different approach to prefabrication, focusing on scaling its Digital Fab near regional demand.
Layoffs and Financial Struggles
In November 2022, Calcalist reported that Veev had laid off around 100 employees, approximately 30% of its workforce. At the time, the company reportedly had around 350 workers, including 100 in Israel. This marked a significant blow to the company’s operations and financial stability.
A Pattern of Startup Failure
It is not the first startup failure for Veev co-founders Haller and Ami Avrahami. Another one of their proptech ventures, Reali, began a shutdown in August 2022 after raising more than $290 million in debt and equity funding. Zeev Ventures was also an investor in this company.
The Future of Veev
As the news of Veev’s potential shutdown spreads, it raises questions about the future of tech-enabled homebuilding and prefabrication. The industry has seen numerous failures in recent years, with Katerra being a notable example. Whether Veev will be able to recover from its current financial struggles remains to be seen.
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About the Author
Mary Ann Azevedo is a seasoned business reporter with over 20 years of experience. She has written for various publications, including FinLedger, Crunchbase News, Crain, Forbes, and Silicon Valley Business Journal. Azevedo holds a Master’s degree in journalism from the University of Texas in Austin.
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