Pacaso, a platform that facilitates co-ownership of luxury vacation homes, has secured more than $36 million through its Regulation A+ offering. The funding came from over 10,000 individual investors.
The company had filed to raise up to $75 million, the maximum permitted under the exemption. While Pacaso has previously attracted capital from private investors through both debt and equity, this marks its first Reg A+ raise, allowing non-accredited investors to participate. The offering was executed using DealMaker’s securities platform.
According to its offering circular, Pacaso reported a 59% drop in revenue in 2023, falling by $129 million compared to the previous year. The decline was linked to reduced unit sales, which the company attributes to macroeconomic factors such as higher interest rates and inflation. These conditions have led to increased consumer caution in real estate purchases and lower marketing expenditures. The shift in the mix of properties sold also contributed to the revenue drop.
Like many early-stage firms, Pacaso continues to operate at a loss.
Founded in 2020 by former Zillow executives Austin Allison and Spencer Rascoff, Pacaso’s model enables buyers to purchase fractional shares—ranging from one-eighth to one-half—of high-end vacation homes in the United States, Mexico, and Europe.
Unlike traditional timeshares, this model provides co-owners with actual property equity. Owners benefit from professional property management, turnkey design, and scheduling services, along with the potential for capital appreciation when selling their share.
Pacaso plans to use the new capital to acquire and launch homes in new markets, including Italy and the Caribbean.
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By Proptechbuzz
By Ravi Kumar