Divvy Homes: Paving a new path to homeownership
by the DFJ team
We’re thrilled to share news of our investment in Divvy Homes. The company secured $7 million led by Caffeinated Capital with participation from Max Levchin’s startup studio HVF and DFJ. Co-founded by Brian Ma and former DFJ senior associate Adena Hefets, the company makes homeownership accessible to everyone.
The problem Divvy solves is one that Brian faced himself. He was unable to secure a mortgage and was left on the sidelines as exploding Bay Area housing prices put homeownership further out of reach. Brian and Adena spent a year exploring different solutions while working inside Max Levchin’s startup studio HVF.
With Divvy, a buyer can choose a home that’s on the market and the company will purchase it. The buyer will typically put 2% down, then pay a monthly amount that includes both rental and equity payments. The equity portion builds credit in the home, achieving 10% equity credit in the home over the span of three years. Participants have the option to buy the home at any time during the engagement.
Divvy’s first two markets will be Atlanta and Cleveland — two cities facing a rise in housing and rental costs. The company is receiving hundreds of applications each week, and has already helped a number of people achieve their dream of homeownership.
While it is becoming increasingly difficult to buy a home due to rising prices and low inventory in many markets, there is a large pool of very qualified people. Divvy has developed a unique approach to a problem that doesn’t appear to be going away anytime soon. We are optimistic that Divvy will help people more easily make the shift from renter to owner. We are especially excited to work with Brian and Adena, and thrilled to play a role in supporting their vision for homeownership now and in the future.