Modular homebuilding startup Veev on the verge of bankruptcy

Veev, a promising modular homebuilding company that’s raised $600 million, could close after a plan for a capital raise failed, according to reporting out of Israel. 

There are talks about a “leading company” potentially acquiring California-based Veev, but the negotiations remain in the very early stages, according to Calcalist. If the negotiations don’t bear fruit, the company will shut down.

Additionally, Veev also stopped paying interest payments on some of its properties in California. The company attributed its difficulties to “the challenging economic environment and declining real estate prices.”

Veev’s business model is innovative: it provides pre-inspected, fully cladded walls directly to homebuilders, ready for installation. The walls also come with mechanical, electrical, and plumbing components already included, and they feature a plug-and-play system to reduce the need for skilled labor.

In March 2022, Veev raised a $400 million Series D led by BOND, while LenX, Zeev Ventures, JLL Spark Global Ventures, and Fifth Wall also participated in the round. Veev said at the time that the funding would be used to scale its operations, accelerate its research and development, and expand construction into new markets.

In March 2021, it raised $100 million through the Tel Aviv Stock Exchange’s TASE UP platform. Investors featured leading Israeli institutional investors, such as Migdal Insurance, Psagot Investment House, More Investment House, and Shavit Capital. 

Veev was founded in California, in 2008 by Amit Heller, Ami Avrahami, and Dafna Akiva. Reali, another proptech company founded by Heller and Avrahami, shut down in 2022 after raising more than $290 million in debt and equity funding.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : HousingWire – https://www.housingwire.com/articles/modular-homebuilding-startup-veev-on-the-verge-of-bankruptcy/