Pacaso Raises $75 Million in Series B, Reaching Unicorn Status

By James White Saturday, March 27, 2021

Having a vacation home to get away to is nice but often expensive. Some consumers opt for solutions offered by timeshare companies and businesses, where they pay a reduced price for the rights to use a property for a specific period of time, though this limits their flexibility when planning a stay. Startup company Pacaso offers a third option to vacationers: co-ownership of a second home. The startup business pulled in $75 million from investors in the latest Series B for the company, along with another $1 billion in debt financing, earning the business unicorn status.

"Pacaso is lightning in a bottle," said Austin Allison, co-founder and CEO of the startup company. "Our mission to democratize second home ownership has resonated with people looking for a refuge, a place where they can gather with friends and family.”

Leading the newest fundraising for the startup business was Dana Settle, Founding Partner at Greycroft and Sarra Zayani, Partner at Global Founders Capital. Other investors who backed the startup company included Sukhinder Singh Cassidy and Theresia Gouw of the Acrew Diversify Capital Fund, First American Financial, Shea Ventures, and Jeff Wilke, former CEO of Amazon Worldwide Consumer, among other angel investors. Fortress Investment Group and First Republic Bank participated in the debt financing round.

An ocean view from a private beach villa.

Vacation Anytime

Founded in 2020 by Allison and co-founder Spencer Rascoff, Pacaso allows vacationers to purchase shares in a second home, from one-half to one-eighth of the property. Pacaso offers a selection of homes to choose from, which the startup business purchases beforehand, creating a property LLC that can be shared amongst several owners. The startup company does not retain any shares in the property, so the home is fully-owned by the consumers.

Once a customer selects a property, they purchase the number of desired shares, then Pacaso puts the remaining shares on the market. Co-owners are vetted by Pacaso and must agree to a code of conduct. The startup business then furnishes the home with modern furniture and decor in addition to completing any necessary repairs and maintenance. After setup, all operating costs are divided proportionally among the co-owners.

Co-owners looking to schedule time in their second home simply use the Pacaso owner app, which utilizes smart scheduling software. Owners are allowed to schedule more time each year through the app, depending on the number of shares they hold. However, the app does not allow back-to-back books, ensuring that each owner is capable of using the property throughout the year.

Summary

Startup company Pacaso reached unicorn status after closing a $75 million Series B and $1 billion debt financing round. The business allows users to buy shares and become co-owners of a second home, letting them schedule a vacation any time of the year through a simple app. The app ensures that co-owners may use the property year-round by preventing back-to-back bookings. Pacaso’s unique platform offers an alternative to traditional timeshares. Since its launch, the business claims to have more than 500,000 website visitors.

About the Author


Headshot of James White

James White is a Michigan State University graduate with a BS in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.

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