Divvy Homes Announces Series A

San Francisco-based Divvy Homes announced a $30m Series A round led by Andreessen Horowitz. Established in 2017, the company turns one’s monthly rent into a down payment.

Here’s How it Works: (1) A user chooses a home (Divvy currently operates in the Atlanta, Memphis and Cleveland metro areas). (2) A user makes a one-time Divvy Down Payment when the lease begins, as well as monthly payments for the duration of the lease. (3) If the user decides to buy the home during the lease, he/she will need to obtain financing and pay Divvy a pre-determined home buyback price. “Divvy is a lease, but unlike a normal lease, Divvy is designed to bring its customers closer to homeownership. If you are ready to stay in one spot for up to 3 years, and you can take good care of your property, Divvy offers several advantages: exclusive right to buy the home, more freedom to customize, rehab and alter the home, and the option to lease for 3 years and get a 10% down payment from Divvy.”

“We get the privilege of buying homes for deserving families every day and it’s a responsibility we don’t take lightly. We are eager to direct our passion, capital, and technology towards creating a world where people who live and work in their communities have a stake in the prosperity of their neighborhood - and with over 2000 applications every month, there’s no shortage of demand for this new way to own.” – Divvy.

Bottom Line: Unmortgage comes to mind.