US home co-ownership platform Pacaso raises $125m led by SoftBank Vision Fund 2

Photo: Daniel Barnes / Unsplash.com

Pacaso, a property co-ownership sales and management platform launched only about a year ago, said on Tuesday it raised $125 million in a funding round led by SoftBank Group Corp’s Vision Fund 2 which valued the company at $1.5 billion.

Pacaso buys luxury homes, renovates and furnishes them, and then finds up to eight owners to buy a share of the property. The property is then managed through Pacaso’s SmartStay app between the owners who may not know each other.

“Owning a second home is an aspiration many, many families share. But it tends to be out of reach for most people because second homes are very expensive and they’re also highly underutilized,” said Austin Allison CEO and co-founder of Pacaso.

The company makes money on reselling the property and a fee for using the management app, said Allison.

The fast growing startup, already operating in 25 destinations in the United States, has also quickly hit some pushback.

In May, a local newspaper in Sonoma Valley, California’s wine region, reported neighbors of a co-owned Pacaso home posting signs “Pacaso time shares not welcome here” and there are at least two petitions on change.org.

Allison said Pacaso “is actually part of the solution” and not causing housing shortages as it helps people looking for second homes pool funds together to buy luxury homes rather than compete for regular residential homes.

Allison said Pacaso manages nearly $200 million worth of real estate on its platform. The company will also expand into Spain by the end of the year as it starts its global expansion, he said.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.