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Modular Building Startup Veev is Shutting Down

Once a darling of the startup world in the construction sector, Veev is shutting down. Employees of the modular construction company were informed of the impending closure over the weekend, Calcalist reported. The California-based proptech company told its staff that the last-minute cancellation of a capital-raising initiative left it without funding necessary to continue.

Veev’s Modular Construction and Funding

Veev specializes in modular construction, designing, building, and assembling all the components of its turnkey homes. Primarily operating in California, Veev manufactures its parts in Union City in a process similar to that of a semiconductor factory, according to Veev co-founder CEO Amit Haller.

The company, founded in 2008, produces walls, ceilings, and floors with electrical and plumbing installed for assembly at a given site. It aims to cut construction timelines and labor costs.

Challenges Faced by Veev

Veev recently told lenders that it couldn’t make interest payments on California property acquisitions financed through debt, blaming the economic environment and declining real estate prices in the state. The company has stopped making those payments until the assets are sold.

Another Blow for CEO Amit Haller

In a statement to the publication, Veev said the “current entity of the company will be closed in the coming days.” The company said its assets would be transferred to an assignee to be sold in the United States, while Israeli employees will keep working.