Veev, a modular construction technology startup that pioneered innovation in property technology, faces imminent closure after a staggering total of approximately $600 million in funding.
At its zenith, Veev boasted a workforce of over 400 individuals, with a significant portion—100 employees—based in Israel. However, the company stunned its staff on Sunday with a dire announcement of impending closure, citing the sudden termination of a crucial capital-raising initiative as the catalyst.
Sources from Calcalist reveal that the company, known for its revolutionary approach in modular construction, is teetering on the edge of shutdown due to unforeseen circumstances surrounding its capital acquisition endeavors.
“Veev was in the process of securing capital, a crucial lifeline that was unexpectedly severed at the eleventh hour. Given the prevailing market dynamics in Israel and globally, securing additional funding became an insurmountable challenge,” the company conveyed in a poignant statement.
“Consequently, the current iteration of the company is slated for closure in the imminent future, to be transitioned to an assignee tasked with managing the assets and overseeing their sale in the U.S. Meanwhile, day-to-day operations will persist until a suitable buyer is identified for these assets. Our team in Israel will continue their efforts during this transitional phase.”
Reports suggest ongoing negotiations with a prominent enterprise aimed at acquiring Veev’s assets and operations. However, should these discussions fail to materialize into a successful deal, the stark outcome looms over the entire workforce: an inevitable mass layoff and the shuttering of the company.
Veev’s $600M Journey: On the Verge of Closure Due to Capital Crunch
Adding to the complexity of the situation, Veev’s expansion in the U.S. involved property acquisitions in California, financed through loans from multiple lenders and financial institutions. In a recent communique addressed to these creditors, Veev acknowledged its inability to sustain interest payments due to the challenging economic landscape and plummeting real estate values, particularly in California.
The company has halted these payments until the properties find buyers, attributing its struggle to the adverse conditions prevailing in the real estate market.
Veev’s plight encapsulates the uncertainties that persist in the startup landscape, showcasing the fragility of even the most innovative ventures when faced with unforeseen financial turmoil and market challenges.
Veev, a company utilizing an innovative panelized method for creating fully cladded walls with integrated mechanical, electrical, and plumbing systems, made headlines last year for both growth and challenges.
The company, which achieved unicorn status in March 2022 following a $400 million Series D funding round led by BOND, had previously garnered $100 million through the Tel Aviv Stock Exchange’s TASE UP platform in March 2021.
Despite this success, Veev faced setbacks, including a layoff of 100 employees in November. The recent funding, with investors like LenX, Zeev Ventures, Fifth Wall Climate Tech, and JLL Spark Global Ventures, aimed to propel U.S. expansion.
Founded in 2008 by Amit Heller, Ami Avrahami, and Dafna Akiva, Veev’s leaders Heller and Avrahami were also involved in the Israeli-founded real estate platform Reali, which ceased operations in September. As of then, Veev employed approximately 140 individuals.
