Proptech Startup Veev On Edge Of Closure After Failing To Raise Funding
A California-based startup that made its name bringing modular construction technology into the mainstream is on the verge of shutting down after failing to raise enough money to sustain operations.
Employees at Veev were informed over the weekend that the abrupt cancellation of a capital raise was behind the decision, according to Calcalist. Executives pointed to ongoing capital markets challenges in the U.S. and Israel, where many Veev employees reside, as the reason it was unable to secure additional funding.
Veev was founded in 2008 but became increasingly popular with investors earlier in the pandemic.
The company was valued at $1B after raising $400M in a Series D round in March 2022. That money was expected to facilitate the company’s expansion in the U.S. It eventually went on to raise $600M and employed 400 workers at its peak.
But the company’s momentum slowed as investors pulled back on proptech amid economic headwinds.
The U.S. proptech market received about $1.2B in growth equity and debt investment in the first quarter, a 76% annual decline and the lowest funding quarter in the sector since the third quarter of 2020, according to a report by Houlihan Lokey.
Negotiations are underway for a company to acquire Veev’s activity and assets. An assignee in the U.S. is spearheading those talks, executives said in their memo.
Employees will continue to work in the interim, but their jobs hang in the balance if the sale is unsuccessful, Calcalist reported.