Divvy, a Utah-based real-time expense tracking startup, raises $35M Series B after $10.5M Series A in May; source: Divvy valuation nearly tripled to $150M-$200M
Alex Konrad / Forbes :
Context & Ripple Effects
Divvy's raise comes barely two months after its $10.5M Series A in May, with the valuation nearly tripling to $150M-$200M on just $35M of new money — an unusually steep step-up for a Utah-based expense-tracking startup. The pace held: within nine months the company closed a $200M Series C led by NEA, and by early 2021 a $165M Series D at a $1.6B valuation, making this round the first data point in one of the faster valuation escalations in business spend management.
One wrinkle worth tracking: 'Divvy' is becoming a crowded name. A home rent-to-own startup called Divvy and cloud-automation firm DivvyCloud were both raising their own rounds in the same window, which matters for brand searches and eventual category positioning.
First-order effects
- Divvy gains $35M to scale its real-time expense tracking product for businesses, with investors pricing it at roughly triple the May mark before the new capital has generated public traction.
Second-order effects
- Competitors in corporate expense management now face a rival funded to subsidize customer acquisition, while the same-named Divvy Homes and DivvyCloud — both raising in 2019 — contend with growing brand confusion in search and sales conversations.
Third-order effects
- If the Series B-to-C-to-D cadence holds, expense management consolidates around a few heavily capitalized platforms that bundle software with payment rails, squeezing out sub-scale trackers before they reach profitability.
The trend: Venture capital is compressing B2B fintech funding cycles, turning expense-management startups into billion-dollar candidates within roughly two years of their Series A.