After raising $600 million, proptech startup Veev is on the verge of closure
After raising $600 million, proptech startup Veev is on the verge of closure
Veev, which informed its staff of the impending closure on Sunday, is believed to be in negotiations to sell its activity and assets
Property technology startup Veev, a pioneer in modular construction technology which has raised a total of about $600 million, is on the verge of closure, according to Calcalist sources. With over 400 employees at its peak, including 100 in Israel, Veev informed its staff of the impending closure on Sunday, attributing it to the abrupt cancellation of a capital-raising initiative.
"Veev was in the process of raising capital, which was canceled at the last minute. In light of the current market situation in Israel and globally, it was not possible to secure additional funding," the company wrote in a statement. "Therefore, the current entity of the company will be closed in the coming days and transferred to an assignee who will be in charge of the assets and their sale in the U.S. In the meantime, until a buyer is found for the assets, the company's operations will continue. At this stage, the company's employees in Israel will continue to work."
It is estimated that there are currently negotiations taking place with a leading company to acquire Veev’s activity and assets. Should these negotiations not prove to be fruitful, all of the company’s employees will be fired and the company will shut down.
As part of its activity in the U.S., Veev acquired properties in California financed through debt from various lenders and bankers. In a recent letter sent to these lenders, Veev expressed its inability to continue interest payments due to the challenging economic environment and declining real estate prices, particularly in California. The company has halted payments until the properties are sold and claims that it has been unsuccessful in striking deals due to the difficult real estate market conditions.
Veev, which laid off 100 employees last November, raised a $400 million Series D and reached unicorn status in March in 2022 to grow its system which leverages a proprietary panelized approach to produce fully cladded walls, complete with mechanical, electrical, and plumbing (MEP) solutions.
The funding round was led by BOND with participation from LenX, Zeev Ventures, Fifth Wall Climate Tech, and JLL Spark Global Ventures.
Veev said at the time that the funding would be used mainly to expand its operations in the U.S.
Veev raised $100 million through the Tel Aviv Stock Exchange’s TASE UP platform in March 2021. Investors included leading Israeli institutional investors, including Migdal Insurance, Psagot Investment House, More Investment House and Shavit Capital, all of which didn’t participate in the latest round.
Veev was founded in 2008 by Amit Heller, Ami Avrahami and Dafna Akiva. Heller and Avrahami are also behind Israeli-founded real estate platform Reali which ceased its operations last September. The company employed around 140 people.
