Bay Area Builder Bust, Veev Veers Towards Shutdown Amid Financial Fiasco

Bay Area Builder Bust, Veev Veers Towards Shutdown Amid Financial FiascoSource: Google Street View
Nina Singh-Hudson
Published on November 27, 2023

The Bay Area's property tech landscape is facing a seismic shake-up as Veev, the once billion-dollar-valued modular homebuilding company, inches dangerously close to shutting down its operations. Founded in 2008 and lauded for its innovative construction throughout Northern California, Veev is grappling with grim market realities that have swiftly undercut its financial solvency and operational longevity.

Despite efforts to quickly secure another round of financing, Veev hit an insurmountable snag on Sunday. A representative candidly disclosed to the Calcalist, "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." According to the San Francisco Chronicle, the cancellation of these capital-raising efforts is sending shockwaves through the company's workforce, leaving 255 people hovering over an uncertain tomorrow, including about 100 souls stationed at its R&D haven in Tel Aviv.

In the wake of the distressing news, echoes of Veev's potential closure reverberated across the industry, drawing parallels with Katerra, another construction tech outfit backed by SoftBank that went bankrupt after raising over $2 billion. While negotiations are currently rumored with a leading company to buy out Veev's flailing operations, should these talks falter, redundancy en masse will ensue. A statement from the company, obtained by the Calcalist, conveyed, "At this stage, the company's employees in Israel will continue to work."

Yet, despite such strong industry credentials and a previous fundraising achievement of $646 million, as cited by PitchBook, the chill of today’s economic headwinds proved to be overwhelming for the modular home maestro. A message sent to the company's lenders was revealed through the Calcalist report, with Veev citing difficulties in continuing to orchestrate interest payments amidst a landscape riddled with a declining Californian real estate market and burgeoning economic hardships. Meanwhile, Veev has said it will try to divest its assets in the U.S. and maintain operations until an acceptable buyer is found.