The acquisition of Divvy Homes for $1 billion illustrates the volatile nature of the proptech industry, highlighting losses for some shareholders despite a significant transaction.
Divvy’s journey from a $2.3 billion valuation to a $1 billion acquisition underlines the challenges faced by startups amid economic fluctuations and market unpredictability.
A letter from Divvy’s CEO revealed that common shareholders would receive no compensation from the sale, a stark contrast to the retained value by preferred shareholders.
The decline in Divvy's valuation exemplifies a broader trend in the proptech sector, where startups struggle amidst a wave of shutdowns and bankruptcies.
Collection
[
|
...
]