(Bloomberg) – Pacaso, a residential real estate joint-ownership startup, has raised $ 75 million in new capital valued at $ 1 billion – just six months since it was founded.
The San Francisco-based company, founded in October by Spencer Rascoff, the co-founder of Zillow Group Inc., and Austin Allison, the founder of Dotloop, said it had achieved so-called unicorn status faster than any other US company.
“Owning a second home was already a pre-pandemic family dream, but that interest only grew as Covid-19 changed the way people work and live,” Pacaso’s CEO Allison said in an interview.
The company buys houses and then sells shares in the properties with a minimum investment of one eighth of the residence. Owners can stay in the house for a certain number of weeks depending on the size of their property, and Pacaso ensures that their belongings are exchanged on arrival and departure.
Pacaso’s funding round was sponsored by Greycroft Partners and Global Founders Capital with the participation of Acrew Diversify Capital Fund, First American Financial Corp. and headed by Shea Ventures. Participating angel investors include Amy Weaver, President and CFO of Salesforce.com Inc .; Jeff Wilke, former CEO of Amazon Worldwide Consumer; Elie Seidman, former CEO of Tinder; and Dollar Shave Club founder Michael Dubin.
“Pacaso is creating a new category that will dramatically change the way people approach buying and owning a second home,” said Dana Settle, Greycroft partner who joins the company’s board of directors as an observer, in an email sent Explanation.
The company works with local real estate agents and holds a broker license in more than 12 locations including Lake Tahoe, Napa and Palm Springs, California. and Park City, Utah. It has approximately 50 listings, including an eighth stake in a Malibu, California home that is listed for $ 812,000. The site also lists properties that are not actively for sale but that the owners may be ready to transact on.
While the bulk of its stocks are between $ 250,000 and $ 1 million, Pacaso plans to add inventory at lower prices. Allison said he anticipates the bulk of the stock will cost $ 100,000 to $ 400,000 within 12 months.
The startup, which was inspired by artist Pablo Picasso and named in part so that owners can claim to own a “Pacaso”, provides financing, interior design and property management services. Pacaso earns a 12% service fee on the sale of a stock and an ongoing monthly asset management fee.
Pacaso received $ 1 billion in debt funding separately, Allison said, declining to name the lenders. Around 60,000 potential buyers have contacted the company on its website, and more than 100 families have bought a stock. The company was “years ahead” where he expected it to be at the time, he said.
The new funds will be used to expand into states like Florida and the Carolinas as well as the northeastern United States, Allison said. International expansion is also planned.
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