Divvy
Divvy CEO Adena Hefets
- Divvy provides alternative financing options for potential home buyers who don't qualify for traditional mortgages.
- It does so by purchasing homes outright and allowing customers to pay it back in a series of monthly payments - 25% of which goes toward building equity and 75% toward paying "rent."
- Last October, Divvy raised a $30 million Series A round led by Andreessen Horowitz, with participation from Caffeinated Capital, DFJ, and Affirm CEO, Max Levchin.
- Below is the investor deck that helped Divvy raise its $30 million Series A.
Divvy is one of the many Silicon Valley startups working to change the way people buy homes. For Divvy, it's specifically interested in providing alternative financing options for potential home buyers who don't qualify for traditional mortgages.
It does so by purchasing homes outright and allowing customers to pay it back in a series of monthly payments - 25% of that payment goes toward building equity and 75% goes toward paying "rent."
"The customers do feel like they're owning a home and they are building up equity within in it," Divvy CEO Adena Hefets told Business Insider in an interview last November. "The difference is that we're doing it in a more manageable way."
Top venture capitalists have bought into Divvy's methodology as well.
Last October, Divvy raised a $30 million Series A round led by Andreessen Horowitz, with participation from Caffeinated Capital, DFJ, and Affirm CEO, Max Levchin.
Hefets told us that in its first year, Divvy helped buy homes for over 100 customers, but that the company has much higher hopes. Divvy's official mission, she says, is getting 100,000 families their first homes.
"That's what we're trying to do in the next, no more than five years. We want 100,000 homes," Hefets said. "We want that to be the first home that a family can buy and we want it to be the stepping stone that allows people to transition from renting to eventually owning their own homes."
Here's the investor deck that helped Divvy sell its mission to VCs and raise a $30 million Series A (sensitive numbers have been redacted):