Many proptech startups, initially fueled by investments during the low-interest-rate period, are now struggling due to the changing economic climate. U.S.-based real estate startup investments plummeted from $11.1 billion in 2021 to just $3.7 billion in 2022, with some companies either selling or shutting down. Divvy Homes, a rent-to-own proptech, is being acquired by Maymont Homes, a division of Brookfield Properties, while EasyKnock shut down following lawsuits and regulatory issues with its sale-leaseback model. Divvy, which had raised over $700 million and reached a valuation of $2.3 billion in 2021, faced multiple layoffs and financial troubles in 2023, leading to its upcoming sale. Despite these challenges, the acquisition by Brookfield is not considered a "fire sale," though the exact price remains undisclosed. Continue here.
