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.
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.
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.