San Francisco-based real estate company Pacaso is on a mission to help homeowners purchase more property. The company announced Wednesday that it raised $75 million in growth funding to support its efforts. In addition, the company secured $1 billion in debt financing.
Pacaso launched just five months ago and the company has already cemented its status as a unicorn. The latest investment, led by Greycroft and Global Founders Capital, places the company’s valuation at $1 billion.
Pacaso was founded by former Zillow executives Austin Allison and Spencer Rascoff. The company enables prospective homeowners to purchase a fraction of its listings via its online marketplace. This enables buyers to own one-eighth to half of a home and split the rest with other co-owners.
To help accomplish this, Pacaso creates a property LLC for each home and then handles all of the sales details. The company will also find other co-owners and help to schedule allotted occupancy time for each. At closing, the co-owners enjoy 100 percent ownership of the home.
After purchase, Pacaso manages the home on an ongoing basis. The company takes care of furnishings, repairs, utilities and property management.
“Our mission to democratize second home ownership has resonated with people looking for a refuge, a place where they can gather with friends and family,” Allison said in a statement.
The company will use the additional capital to expand to new markets. Pacaso currently has listings up and down the California coast as well as in Scottsdale, Arizona, and Park City, Utah.
More than 60,000 prospective buyers have engaged with Pacaso’s platform since its launch.
Additional investors Acrew Diversify Capital Fund, First American Financial and Shea Ventures participated in the round, among others.
Pacaso has raised $90 million in venture capital financing to date, according to the company.