In a shocking turn of events, Veev, a real estate developer turned tech-enabled homebuilder that reached unicorn status last year, is reportedly facing shutdown after an abrupt cancellation of its capital-raising initiative. According to multiple reports, the company has had to shut down despite securing $600 million in total funding, with $400 million of it raised in March 2022.
Background on Veev
Veev Group was founded in 2008 as a traditional real estate developer and asset manager. During its early years, the company developed new ways to improve the building process. In 2017, Veev began to focus on prefabrication capabilities, and by 2018, it had formally pivoted to become a vertically integrated developer focused on building innovation.
Pivot to Prefabrication and Innovation
In 2019, the company name changed from Dragonfly Group to Veev. The decision to pivot towards prefabrication and innovation was driven by the company’s commitment to improving the construction process. CEO and co-founder Amit Haller noted that Veev took a different approach than its competitors, focusing on replicating the success of its Digital Fab near regional demand.
Comparison with Katerra
Interestingly, when TechCrunch spoke to the company 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 stated that Katerra had posed itself as a full-stack supply chain company, adopting prefab construction tech to further its efforts.
Veev’s Approach
Haller emphasized that Veev took a different approach, where the product – the home – came first. The next stage for the company was to scale by replicating the success of its Digital Fab near regional demand.
Layoffs and Funding
In November 2022, Calcalist reported that Veev had laid off around 100 employees, or about 30% of its workforce. At that time, the company reportedly had around 350 workers, including 100 in Israel. The layoffs were a significant blow to the company, which was already struggling with funding issues.
Funding and Investors
Veev raised $600 million in total, with $400 million secured in March 2022. The bond led Veev’s 2022 round, which also included participation from LenX (formerly Lennar Ventures), Zeev Ventures, Fifth Wall Climate Tech, and JLL Spark Global Ventures.
Investors’ Involvement
Zeev Ventures was not only an investor in Veev but also had invested in another proptech venture co-founded by Amit Haller and Ami Avrahami – Reali. Reali began a shutdown in August 2022 after raising more than $290 million in debt and equity funding.
Conclusion
Veev’s shutdown is a significant blow to the tech-enabled homebuilding industry, which had high hopes for the company’s innovative approach. The abrupt cancellation of its capital-raising initiative raises questions about the viability of Veev’s business model. As the startup ecosystem continues to evolve, it remains to be seen what the future holds for companies like Veev that are pushing the boundaries of innovation in the construction industry.
Related Topics
- Prefab
- PropTech
- Startups
- Veev
- Venture Capital
About the Author
Mary Ann Azevedo is a Sr. Reporter at TechCrunch, with over 20 years of experience in business reporting and editing for publications such as FinLedger, Crunchbase News, Crain, Forbes, and Silicon Valley Business Journal.
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