Pacaso is a property broker that buys single-family homes and sells them to consortiums of buyers.[2][3] The San Francisco–based company claims it reached unicorn status faster than any other USA-based company.[4][2][3]
History
Austin Allison and Spencer Rascoff, ex-Zillow executives, co-founded the start-up in October 2020[4] in Silicon Valley, California.[5]
Pacaso’s valuation rose to $1.5 billion in September 2021 following a $125 million funding round led by SoftBank Group.[6] Other investors include Greycroft Partners and Global Founders Capital.[2] Pacaso is reported to have separately obtained $1 billion in debt financing.[2]
As of March 2022, the company is active in nearly 50 markets in the U.S., Spain, the U.K., and Mexico.[7][8][9]
Business model
Pacaso operates by purchasing residential properties and then selling shares of the home to up to eight buyers.[5] The company reports earning a twelve percent service fee on the sale of a share in addition to an ongoing monthly asset-management fee.[2]
The organization claims that its model differs from the traditional timeshare model because purchases count as real estate acquisitions and appreciate in value.[5] Buyers can sell their share after 12 months of ownership.[3]
Pacaso's business model has been criticized as a way around timeshare laws in California.[10] The company had to sell a house it had purchased in Napa after community opposition.[11]
