(Bloomberg) — Pacaso, a startup offering shared ownership of vacation homes, has reached a $1.5 billion valuation after raising $125 million from investors including SoftBank Vision Fund 2.
Real estate-focused venture firm Fifth Wall, Gaingels, Greycroft, Global Founders Capital, 75 & Sunny Ventures and Crosscut also participated in the funding round, said Pacaso Chief Executive Officer Austin Allison, who co-founded the company with Spencer Rascoff.
The San Francisco-based company, which launched in October 2020, will use fresh funds to pursue growth, Allison said in an interview.
“The capital will empower us to expand into markets domestically and outside the U.S. where there is pretty obvious desirability,” he said.
Pacaso plans to launch in Spain by year-end, with entry into Mexico and the Caribbean also on the horizon. Allison said the firm has also identified areas of interest within France, Italy and the U.K. The startup is active in 25 favored U.S. second-home destinations such as Miami; Park City, Utah; and Aspen, Colorado.
Almost 300 families have purchased a one-eighth to one-half share in the properties it manages, which are collectively valued at nearly $200 million, said Allison, who owns a Pacaso share in South Florida. Pacaso shares typically change hands for $250,000 to $1 million, though some pricier cities eclipse that range. It’s operating at an annualized revenue run rate of $330 million, Allison said.
About 30% of owners are non-white or identify as LGBTQ, said Allison. Pacaso’s structure ensures its homes are inhabited more frequently than those that are seasonally visited and sit empty for over 10 months a year. The startup’s platform features average occupancy of more than 90%, he said.
“Tens of millions of families have not been able to afford the second home of their dreams in the past,” Allison said.
Pacaso has pioneered an offering that increases the economic contribution of second-home owners to towns across America, Lydia Jett, a partner at SoftBank Investment Advisers, said in an emailed statement.
“We’re excited to be long-term partners to Pacaso and support the company’s mission to bring second home ownership to more people around the world,” Jett said.
Read more: Rascoff’s Pacaso Vaults to Unicorn Status as Greycroft Invests
More stories like this are available on bloomberg.com
©2021 Bloomberg L.P.
