Veev

Veev, a technology-enabled homebuilder, was on the verge of shutting down in November 2023 after the abrupt cancellation of a capital-raising initiative.¹²³⁵⁸ The company had raised about $600 million in total, including a $400 million Series D round in March 2022 that valued it at over $1 billion.^1235811 Veev informed its staff of the impending closure and was in negotiations to sell its activity and assets, with employees facing potential layoffs if a sale was not completed.²³⁵⁸

Timeline

Money raised

Veev raised a total of about $600 million.¹²³⁵⁸ In February 2020, Veev raised an $85 million Series B round led by Lennar Ventures and Zeev Ventures.⁹¹⁰¹³ In March 2021, Veev raised $100 million through the Tel Aviv Stock Exchange's TASE UP platform.²³⁵¹¹ In March 2022, Veev raised a $400 million Series D round led by BOND, with participation from LenX, Zeev Ventures, Fifth Wall Climate Tech, and JLL Spark Global Ventures.^1235811 The Series D round valued Veev at over $1 billion, reaching unicorn status.^1235811 Veev also raised $12 million in debt financing from Western Technology Investment in February 2020.¹⁰

Investors named in the sources: BOND^1235811, LenX^1235811, Zeev Ventures^12358911, Fifth Wall Climate Tech^1235811, JLL Spark Global Ventures^1235811, Lennar Ventures⁹¹⁰¹³, Khosla Ventures⁹¹³, Eclipse Ventures⁹¹³, Greenspring Associates⁹¹³, WestWave Capital⁹, Migdal Insurance²³¹¹, Psagot Investment House²³¹¹, More Investment House²³¹¹, Shavit Capital²³¹¹, Western Technology Investment¹⁰.

What happened

Veev was founded in 2008 by Amit Heller, Ami Avrahami, and Dafna Akiva.^1235911 Veev Group started as a traditional real estate developer and asset manager.¹ In 2017, Veev Group began to focus on prefabrication capabilities.¹ In 2018, Veev formally pivoted to a vertically integrated developer focused on building innovation.¹ In 2019, the company name changed from Dragonfly Group to Veev.¹

Veev developed a proprietary panelized approach to produce fully cladded walls, complete with mechanical, electrical, and plumbing (MEP) solutions.²³⁵¹¹ The pre-inspected walls were delivered to the site ready for installation.³¹¹ Veev aimed to cut construction timelines and labor costs.⁵ In February 2020, Veev raised an $85 million Series B round led by Lennar Ventures and Zeev Ventures.⁹¹⁰¹³ In March 2021, Veev raised $100 million through the Tel Aviv Stock Exchange's TASE UP platform.²³⁵¹¹

In March 2022, Veev raised a $400 million Series D round led by BOND, with participation from LenX, Zeev Ventures, Fifth Wall Climate Tech, and JLL Spark Global Ventures.^1235811 The Series D round valued Veev at over $1 billion, reaching unicorn status.^1235811 Veev said the funding would be used mainly to expand its operations in the U.S.²³⁵¹¹ Veev planned to add 100 employees to its Israeli R&D center and accelerate research and development initiatives.¹¹ At its peak, Veev employed over 400 people, including 100 in Israel.²⁵⁸

In November 2022, Veev laid off around 100 employees, about 30% of its workforce.¹²⁵ Veev pivoted from building high-rises to low-slung homes after the layoffs.⁵ Veev acquired properties in California financed through debt from various lenders and bankers.²⁵ Veev told lenders it could not continue interest payments due to the challenging economic environment and declining real estate prices, particularly in California.²³⁵ Veev halted payments until the properties are sold and claimed it had been unsuccessful in striking deals due to the difficult real estate market conditions.²

In November 2023, Veev was in the process of raising capital, which was canceled at the last minute.²⁵⁸ Veev informed its staff of the impending closure on Sunday, November 26, 2023.²⁵⁸ Veev said the current entity of the company would be closed in the coming days and transferred to an assignee who would be in charge of the assets and their sale in the U.S.²⁵ Veev said that until a buyer is found for the assets, the company's operations would continue, and employees in Israel would continue to work.²⁵ It was estimated that negotiations were taking place with a leading company to acquire Veev's activity and assets.²³⁸

If the negotiations did not prove fruitful, all of the company's employees would be fired and the company would shut down.²³ Veev stopped paying interest payments on some of its properties in California.³ Veev attributed its difficulties to the challenging economic environment and declining real estate prices.³ Veev's business model provided pre-inspected, fully cladded walls directly to homebuilders, ready for installation.³ The walls came with mechanical, electrical, and plumbing components already included, and featured a plug-and-play system to reduce the need for skilled labor.³

Veev was once valued at over $1 billion.⁴ Veev specialized in modular construction, designing, building, and assembling all the components of its turnkey homes.⁵ Veev primarily operated in California and manufactured its parts in Union City.⁵ Veev produced walls, ceilings, and floors with electrical and plumbing installed for assembly at a given site.⁵ Veev initially resonated with investors.⁵

Veev raised $100 million in March 2021 through a Tel Aviv Stock Exchange platform.⁵ Veev planned to use the cash to add staff and expand into new markets.⁵ Veev raised $600 million altogether and had 400 employees at its height.⁵ Months after its Series D, Veev laid off 30 percent of its staff and pivoted from building high-rises to low-slung homes.⁵ Veev recently told lenders that it couldn't make interest payments on California property acquisitions financed through debt.⁵

Veev blamed the economic environment and declining real estate prices in the state.⁵ Veev has stopped making those payments until the assets are sold.⁵ Reali raised $250 million in August 2021 and laid off 140 people when it shut down.⁵ Veev was in the process of shutting down, according to a person with knowledge.⁶ Veev entered the liquidation phase and laid off its U.S.-based employees.⁷

Veev's U.S. operations were shuttered in November 2023 after failing to meet financial obligations to suppliers and employees under California law.⁹ Veev entered insolvency and liquidated assets while retaining Israeli tech operations with about 250 employees total.⁹ Lennar Corporation acquired full control of Veev's operations on December 21, 2023, for several dozen million dollars following a three-week bridging loan it provided as the sole bidder.⁹ Lennar let go of founders Ami Avrahami and Dafna Akiva while planning to retain Veev's technological operations and employees in Israel.⁹

Where the founders are now

Amit Heller and Ami Avrahami were also behind Israeli-founded real estate platform Reali, which ceased its operations in September 2022.²⁵ Lennar let go of founders Ami Avrahami and Dafna Akiva after acquiring Veev.⁹

Sources

1. Prefab home builder Veev reportedly shutting down after reaching unicorn status last year | TechCrunch, TechCrunch, 2023-11-27
2. After raising $600 million, proptech startup Veev is on the verge of closure | CTech, ctech, 2023-11-26
3. Modular homebuilding startup Veev on the verge of bankruptcy, HousingWire, Nov 27, 20
4. Client Challenge, sfgate.com, Nov 28, 20
5. Modular building startup Veev is closing after raising $600M, The Real Deal, 2023-11-27
6. Khosla-Backed Construction Tech Startup Veev to Shut ..., theinformation.com, Nov 26, 20
7. Explainer: Why Did Veev Fail, and What Happens Next?, builderonline.com, Dec 1, 202
8. Proptech Startup Veev On Edge Of Closure After Failing To Raise Funding, Bisnow, 2023-11-28
9. Veev Acquisition, Valuation, Funding & Investors | Multiples, multiples.vc, Sep 18, 20
10. How Much Did Veev Raise? Funding & Key Investors | Clay, clay.com
11. Property technology company Veev raises $400 million, reaches unicorn status | CTech, ctech, 2022-03-01
13. Veev IPO Timeline and Financing Details - Forge, forgeglobal.com

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