Hive 50 Honors
For modeling a rent-to-own business that rewards lenders and investors and forges a path to homeownership.
What You Need To Know
Divvy—currently operating in Atlanta, Cleveland, and Memphis—allows would-be buyers to undergo a credit and financial check, and to find a home within a price range specified by the company. Divvy buys the home with cash on their behalf. The buyers pay 1% to 2% down and move in with a three-year lease. Divvy charges monthly rent, with about 20% of the monthly payment going toward equity to buy the home. The monthly rent is higher than one might pay to rent a similar place, but after three years, the consumer will own about 10% of the home, which can qualify them for a mortgage.
Who’s Involved
This San Francisco–based startup was founded by chief operating officer Adena Hefets, managing director Alex Klarfeld, CEO Brian Ma, and chief technology officer Nicholas Clark.
Time Stamp
Divvy has raised over $100 million in funding in its first 18 months—from Max Levchin, Caffeinated Capital, and Andreessen Horowitz, among others—and uses their help to scale its efforts.
