Pacaso
{{Short description|American property broker company}}
{{Use mdy dates|date=April 2023}}
{{Infobox company
| name = Pacaso
| logo =
| type = Private
| industry = Real estate
| founded = {{Start date and age|2020|10|1}}
| hq_location =
| hq_location_city = San Francisco, California
| hq_location_country = United States
| area_served =
| key_people = Austin Allison, Spencer Rascoff
| num_employees = 200+{{cite web |title=Pacaso |url=https://craft.co/pacaso |publisher=Craft |access-date=March 23, 2022}}
| website = [https://www.pacaso.com/ pacaso.com]
}}
Pacaso is a property broker that buys single-family homes and sells them to consortiums of buyers.{{Cite news |url=https://www.bloomberg.com/news/articles/2021-03-24/rascoff-s-pacaso-vaults-to-unicorn-status-as-greycroft-invests|title=Rascoff's Pacaso valults to unicorn status as greycroft invests|date=2021-03-24|access-date=2021-10-18|work=Bloomberg}}{{Cite news|url=https://www.cnbc.com/2021/07/16/unicorn-start-up-pacaso-seeks-to-capitalize-on-surging-vacation-home-prices.html|title=Unicorn start-up Pacaso seeks to capitalize on surging vacation home prices|date=2021-07-16|access-date=2021-10-18|work=CNBC|last=Singh|first=Pia}} The San Francisco–based company claims it reached unicorn status faster than any other USA-based company.{{Cite web|url=https://www.forbes.com/sites/noahkirsch/2021/03/24/just-five-months-old-zillow-cofounders-pacaso-claims-its-already-a-unicorn/?sh=4ebd45fb5487 |title=Just Five Months Old, Zillow Cofounder's Pacaso Claims It's Already A Unicorn|date=2021-04-24|access-date=2021-10-18|website=Forbes|last=Kirsch|first=Noah}}
History
Austin Allison and Spencer Rascoff, ex-Zillow executives, co-founded the start-up in October 2020 in Silicon Valley, California.{{Cite web|url=https://www.forbes.com/sites/everettpotter/2021/06/27/pacaso-disrupting-vacation-home-ownership/?sh=4a35a539693a |title=Pacaso Disrupting Vacation Home Ownership|date=2021-06-27|access-date=2021-10-18|website=Forbes|last=Potter|first=Everett}}
Pacaso’s valuation rose to $1.5 billion in September 2021 following a $125 million funding round led by SoftBank Group.{{Cite web|url=https://www.reuters.com/business/home-co-ownership-platform-pacaso-raises-125-mln-round-led-by-softbank-2021-09-14/|title=Home co-ownership platform Pacaso raises $125 mln in round led by SoftBank|date=2021-09-14|access-date=2021-10-18|website=Reuters|last=Lanhee Lee|first=Jane}} Other investors include Greycroft Partners and Global Founders Capital. Pacaso is reported to have separately obtained $1 billion in debt financing.
As of March 2022, the company is active in nearly 50 markets in the U.S., Spain, the U.K., and Mexico.{{cite web |last1=Waldek |first1=Stefanie |title=The Newfangled Real Estate Companies Making Vacations Easier |date=March 11, 2022 |url=https://www.architecturaldigest.com/story/vacation-home-options-pacaso |publisher=Architectural Digest |access-date=March 11, 2022}}{{cite news |last1=Tan |first1=Gillian |title=SoftBank Vision Fund 2 Bets on Pacaso at $1.5 Billion Valuation |url=https://www.bloomberg.com/news/articles/2021-09-14/softbank-vision-fund-2-bets-on-pacaso-at-1-5-billion-valuation |newspaper=Bloomberg |date=September 14, 2021 |access-date=September 14, 2021}}{{cite web |title=Real Estate Company Pacaso |url=https://www.nshoremag.com/community-news/real-estate-company-pacaso-expands-luxury-home-co-ownership-to-cape-cod/ |website=nshoremag.com |date=May 11, 2022 |access-date=June 14, 2022}}
Business model
Pacaso operates by purchasing residential properties and then selling shares of the home to up to eight buyers. The company reports earning a twelve percent service fee on the sale of a share in addition to an ongoing monthly asset-management fee.
The organization claims that its model differs from the traditional timeshare model because purchases count as real estate acquisitions and appreciate in value. Buyers can sell their share after 12 months of ownership.
Pacaso's business model has been criticized as a way around timeshare laws in California.{{Cite web |last=Fry |first=Hannah |date=2023-03-29 |title=Newport Beach battles a new breed of luxury party houses: fractional ownership |url=https://www.latimes.com/california/story/2023-03-29/newport-beach-battles-a-new-breed-of-luxury-party-houses |access-date=2023-04-01 |website=Los Angeles Times |language=en-US}} The company had to sell a house it had purchased in Napa after community opposition.{{cite news|url=https://www.npr.org/sections/money/2021/08/24/1030151330/a-unicorn-startup-is-turning-houses-into-corporations|title=A Startup Is Turning Houses Into Corporations, And The Neighbors Are Fighting Back |date=August 24, 2021|work=NPR News |publisher=National Public Radio |first=Greg|last=Rosalsky}}
References
{{reflist}}
External links
- [https://www.pacaso.com/ Pacaso Official Site]
Category:American real estate websites
Category:Companies based in San Francisco
Category:Real estate services companies of the United States