Former Zillow CEO Spencer Rascoff has just launched Pacaso, a startup looking to redefine the timeshare model, GeekWire reported. The marketplace will allow buyers to purchase from one-eighth to one-half of a vacation home. Its network of agents and suite of tech tools help owners manage the process.
- Dig Deeper: Buyers interested in a second home can tell Pacaso what they are looking for, and the company will help them find a property and set up an LLC designed for co-ownership. Pacaso makes money by charging owners a 10% fee at the time of purchase, and from an annual property management fee equal to 1% of the purchase price. The company will also purchase part of a home from current second home owners, then sell the rest to vetted buyers.
- Worth Noting: Rascoff previously signed a non-compete agreement with Zillow, but it has expired. Even so, Rascoff said he doesn’t view Pacaso as competitive, despite Zillow investing heavily in its home-buying and selling arm.
- Fundraising: The company raised a $17 million seed round led by Seattle venture capital firm Maveron, with participation from Crosscut, Global Founders Capital, and individual investors such as former Starbucks CEO Howard Schultz, real estate coach Tom Ferry, former Zillow executive Greg Schwartz, and Amazon CEO of Consumer Worldwide Jeff Wilke. Pacaso also raised $250 million in debt financing to purchase homes. [GeekWire+TRD]