Luxury home co-ownership venture, Pacaso, secures $35 million in funding for their expansion plans.
Pacaso, a tech-enabled platform for co-ownership of luxury vacation homes, has demonstrated impressive growth since its launch in late 2020. The company, founded by Austin Allison and Spencer Rascoff, has raised over $270 million across four fundraising rounds, including a $125 million Series B in early 2022.
The platform operates in over 40 desirable destinations across the U.S., Mexico, and Europe, with plans to expand into Italy and the Caribbean. Pacaso allows buyers to co-own luxury vacation homes, offering shares from one-eighth to one-half.
In its early years, Pacaso focused on scaling inventory and transaction volume to capitalize on the fractional second-home market. By mid-2023, the company had closed over 2,000 home purchases shared among multiple owners.
Despite investing heavily in technology, marketing, and operations, Pacaso has not yet reached profitability. However, the company aims to achieve profits through transaction fees and ongoing services as the user base and property portfolio grow.
Recent financial reports reveal encouraging signs of progress. Pacaso reported an adjusted gross profit of $23.6 million, a 18% increase year-over-year. The company has also facilitated over $1 billion in transactions and generated more than $110 million in gross profit to date.
The current fundraising round aims to open the opportunity to more people at a greater scale, according to Austin Allison, the Co-Founder and CEO of Pacaso. The current offering provides both accredited and everyday investors with the opportunity to purchase shares in Pacaso.
Pacaso's traction indicates a real demand for a new way to own and invest in luxury real estate. The company provides professional management and support services, making co-ownership a seamless and enjoyable experience for its clients.
The $35 million raised in the latest round is significantly higher than the average for Tier 2 Regulation A+ offerings, reflecting the strong investor interest in Pacaso's unique business model. As Pacaso continues to expand and evolve, it remains a compelling player in the luxury vacation home market.
- As Pacaso raises $35 million in the latest round, technology plays a crucial role in facilitating transactions and managing luxury vacation homes, revolutionizing the lifestyle of co-owners.
- With plans to expand into Italy and the Caribbean, Pacaso's investment in technology aims to cater to a broader audience and diversify its finance portfolio, driving growth in the luxury real estate sector.
