This startup is selling for $1B, so why is its founder not proud of the outcome? | TechCrunch

Divvy Homes, a real estate fintech, is set to be acquired by Brookfield Properties for approximately $1 billion. This sale, while seemingly acceptable, is underpinned by substantial debt taken on by Divvy, including a $735 million financing in 2021. Consequently, much of the sale proceeds are earmarked for debt repayment and expenses, leaving common shareholders at a loss, as highlighted by CEO Adena Hefets. This situation reflects broader challenges in the proptech market, exacerbated by rising interest rates and operational complaints against Divvy.

Last week, real estate fintech Divvy Homes announced that it was selling to Brookfield Properties for "a total consideration" of about $1 billion.

CEO and co-founder Adena Hefets stated in a letter to stakeholders that "common shareholders nor holders of the Series FF preferred stock" would not receive any consideration.

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