Pacaso facilitates the purchase of secondary homes and then sells shares in those homes to multiple buyers, who become co-owners of the property. Each co-owner is entitled to a certain percentage of the property and can use it for a set amount of time each year. The company takes care of property management, maintenance, and other services to ensure that the property is well-maintained and available for use by all co-owners. Its model aims to make second home ownership more accessible and affordable for a larger number of people.
We have known Pacaso cofounder, Spencer Rascoff, since 2005 when he co-founded Zillow. In 2019, he called to let us know that he had partnered with Austin Allison to form a new company. This new co eventually became Pacaso. After hearing the pitch, we gave them a term sheet within three weeks.
When we look for a founder to partner with, we love having a long-standing working relationship. We had sat on the board of Zulily with Spencer and had watched him work at Zillow for many years. His consistent excellence had earned our trust. Similarly, we found in Austin a kindred spirit of non-normal behavior. From getting a pilot’s license to selling his startup to Zillow, he had consistently done challenging, interesting things with his life and career.
Since Pacaso was in the real estate business, a market Spencer and Austin were deeply familiar with, the team was incredibly advantaged. Over their first year, they built one of the most cohesive and complementary executive management teams we’ve ever seen put together to start a company’s journey. The team has gone on to raise over $200M in equity funding. We look forward to a future where people can have dream second homes at prices they can afford.