"Pacaso is a platform for fractional ownership of luxury vacation homes. The company facilitates the sale of properties in vacation destinations like Jackson Hole, Tuscany, and Napa, which are acquired through property-specific LLCs. Unlike timeshares, which allow multiple users the right to use a property for a set time each year, Pacaso allows clients to share equity in their properties."
"By 2024, they began considering other options because, Allison said,venture capital suddenly felt limited. "Traditional VC rounds put one or two investors on your cap table," Allison told Business Insider. The company wanted more eyeballs on its platform. They came across Reg A, a securities exemption that lets startups raise up to $75 million in a 12-month period through a form of equity crowdfunding. It functions like a mini-IPO,allowing companies to raise money from both accredited and non-accredited investors."
Pacaso launched in 2020, founded by Austin Allison and Spencer Rascoff as a platform for fractional ownership of luxury vacation homes. The company acquires properties through property-specific LLCs and sells equity shares that allow co-owners to share ownership, not timed usage like timeshares. The startup reached a $1 billion valuation within five months, later settling just below $1 billion. After raising nearly $220 million from traditional investors, the company explored Reg A in 2024 to broaden its investor base. Reg A permits up to $75 million in a 12-month period and allows fundraising from accredited and non-accredited investors.
Read at Business Insider
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