Real Estate Marketplace Pacaso Raises Over $35M in Reg A Offering

Pacaso, a marketplace for co-owned luxury vacation homes, has announced that it has raised over $36 million from more than 10,000 individual investors through its Reg A+ offering.

Pacaso filed to raise over $75 million, which is the funding cap for the exemption. In the past, Pacaso has raised both debt and equity capital from private investors. This is the first Reg A offering that allows non-accredited investors to participate.

Pacaso has utilized DealMaker to power the securities offering.

Like many early-stage firms, Pacaso continues to incur losses, as outlined in its offering circular.

These documents share that Pacaso’s revenue decreased by $129.0 million, or 59%, in 2023 compared to 2022, primarily due to lower volume of unit sales. The company explains that the decrease in units sold is being driven by macroeconomic factors, including increased interest rates and inflation, which have led to consumer uncertainty regarding purchasing real estate and reduced marketing spending. The decrease in revenue is also said to be attributable to the change in mix of unit types transacted.

Founded in 2020 by former Zillow executives Austin Allison and Spencer Rascoff, Pacaso aims to make second home ownership more accessible.  Pacaso’s co-ownership model allows buyers to purchase fractional shares—ranging from one-eighth to one-half—of luxury vacation homes in premier destinations across the United States, Mexico, and Europe.

Unlike traditional timeshares, Pacaso’s approach provides buyers with real equity in the property, offering both the lifestyle benefits of a second home and the potential for financial returns upon resale.

The company handles all aspects of ownership, from professional property management and turnkey design to scheduling and maintenance, ensuring a seamless experience for co-owners.

The new funding is expected to help finance new properties in markets such as Italy and the Caribbean.