Proptech participant Veev, a modular housing firm based mostly in Haywood, CA, could also be on the verge of closing its doorways within the midst of an enlargement that anticipated the Bay Space firm to construct 300 single-family homes over the subsequent two years.
The corporate, which was based in Tel Aviv in 2008 and has constructed greater than 170 residential models in Northern California, has determined to promote its property after failing to safe its newest spherical of financing, in accordance with a report within the San Francisco Chronicle.
The corporate, which in accordance with PitchBook has raised $646M so far and employs 255, together with 100 individuals in an R&D middle in Tel Aviv, is actively in search of to promote its US property with a purpose to mitigate its losses, the report stated.
“Veev was within the means of a funding spherical these previous couple of weeks. Sadly, over this previous week, as a result of macroeconomic setting, the spherical didn’t come to fruition on the anticipated deadline,” Veev stated, in a press release supplied to the Chronicle.
“The corporate will endure an project for the advantage of collectors course of and is hopeful that what was created can stay on in some kind or trend. Within the meantime, till a purchaser is discovered for the property, the corporate’s operations will proceed,” the assertion stated.
Veev manufactured modular partitions, roofing and different constructing segments in its manufacturing unit and delivered them to building websites, which they will rapidly be hooked up to one another in a technique the corporate calls “plug and play.” The modular models are produced with pre-attached electrical and plumbing shops.
In line with the newspaper report, Veev acquired properties in California by accumulating debt. Veev stated in a message to lenders it’s having issue making curiosity funds and is unable to maintain the funds till the properties are divested, the report stated.
In an early signal of economic issue at Veev, the corporate laid of an estimated 30% of its workforce on the finish of 2022. Buyers within the firm have included Khosla Ventures, Brookfield Development and Zeev Ventures.
Till the center of final yr, Veev seemed to be a darling with traders. In March 2021, the corporate raised $100M by a Tel Aviv Inventory Trade platform. In 2022, Veev raised $400M in a Collection D spherical that valued the corporate at an estimated $1B.
Veev isn’t the primary modular building tech startup to go beneath amid the pullback in enterprise capital funding. In 2021, Menlo Park, CA-based Katerra, which was backed by Softbank Group’s Imaginative and prescient Fund, filed for chapter safety.
