Real estate startup Pacaso raised $75 million at a valuation of $1 billion just six months after launching — the fastest U.S. company to reach unicorn status, the company announced on Wednesday (March 24).
The new funding was led by venture capital leaders Dana Settle of Greycroft and Sarra Zayani of Global Founders Capital. The new funds bring Pacaso’s total equity financing to more than $90 million. The company also secured $1 billion in debt financing.
Other participants in the funding round included Sukhinder Singh Cassidy, Theresia Gouw of the Acrew Diversify Capital Fund, First American Financial, Shea Ventures, Jeff Wilke, former CEO of Amazon Worldwide Consumer, and other angel investors.
Pacaso said it will use the new capital to foster growth into new markets. The Silicon Valley company was founded by Zillow Group co-founder Spencer Rascoff and Dotloop founder Austin Allison in October 2020.
“Pacaso is lightning in a bottle,” Co-Founder and CEO Allison said in a press release. “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. Pacaso’s innovative co-ownership model is helping many people now realize their dream of owning a second home.”
The company helps people co-own vacation homes by sharing ownership with others. Pacaso buys the homes, forms an LLC, and then sells shares in the property, with a minimum investment of one-eighth, according to its website. The percentage size of ownership determines the length of time people get to stay at the property. Pacaso then acts as the agent on behalf of the group and handles maintenance, financing, legalities and more.
Since launching, the company said, its website attracted more than a half-million visitors with some 60,000 potential buyers engaging with Pacaso to learn more about the platform. The company partners with local real estate firms and holds a brokerage license in more than 12 second-home markets, including Napa, Lake Tahoe, Palm Springs, Malibu and Park City.
Millennials are now turning their attention to homeownership. A December 2020 report by the National Association of Realtors showed that millennials make up 38 percent of the home buyers. Older millennials — 30 to 39 years old — comprise 25 percent of that group, with younger millennials — 22 to 29 years old — making up 13 percent.