In less than six months after raising 75 million, Picasso -A real estate platform aimed at helping people buy and co-own another home-announced today that it has raised $ 125 million worth of 1.5 billion.
Softbank Vision Fund 2 led the Series C funding round for Picasso, which essentially went from “launch to unicorn” in five months earlier this year and is pronounced like Picasso. Current backers Gracroft, Global Founders Capital, Crosscut and 75 and Sunny Ventures as well as new Bakers Fifth Wall and Gingles also participated in the financing. (Sunny Ventures is a venture firm owned by Spencer Rascoff, co-founder of Picasso). With the latest round, Picasso has raised a total of $ 215 million in equity funding since the beginning of 2020. That too Debt financing reached 1 billion earlier this year.
According to CEO and co-founder Austin Ellison, the fully distributed startup launched its platform in October last year and already has an annual revenue rate of $ 330 million એક a feat that clearly seems remarkable. The company currently operates about $ 200 million in real estate on its platform, and in the second quarter, its website and mobile app combined saw 1.8 million visits, up 196% from the first quarter. It currently serves owners in “hundreds”.
The former Zilo executives Alison and Raskov came up with the idea of Picasso after keeping Zillo together about two years ago. (Publicly traded Zillow today has a market cap of 24 24 billion.)
With the unique co-ownership model made possible by the creation of a property-specific LLC, the company aims to reduce the cost and difficulty of owning a second home. It also offers vacation homeowners the option of renting out their property.
Picasso distinguishes its model from the old concept of timeshares, which sell the right to use a fixed time in a condo or hotel. Picasso aims to bring together a small group of co-owners to purchase a stake in a one-family home and “enjoy ongoing enjoyment throughout the year.”
The way it works is that Picasso buys a home or shares a home. The company then partners with local real estate agents to market the property. It then sells shares in the home સુધી up to one-eighth of the home.
Picasso holds brokerage licenses in about 25 other top home markets, such as Napa, Lake Tahoe, Palm Springs, Malibu and Park City. It recently expanded to its first market outside the US-Spain. Buyers can view curated listings on the startup’s website, including active listings, as well as previews of homes under consideration for purchase based on buyers’ demand.
In addition to curating listings, Picasso also offers integrated financing, “upscale” interior design, professional property management and proprietary scheduling technology.
In January of this year, Picasso had 30 employees. According to Allison, she has more than 120 today.
It is important to note that while Picasso wants to one day provide affordable housing to a large segment of the population, Allison acknowledges that currently, the homes available on its platform are “very” luxury or low-cost homes.
What markets he plans to enter next, he said, will depend on customer feedback. For now, Alice said, 65% of Picasso’s customers are second-time landlords for the first time And 25% are non-white or known as LGBTQ.
Softbank Investment Partner Lydia Jet Says he was drawn to Picasso for both professional and personal reasons.
For one thing, she says that when she was growing up, her family owned one-tenth of an “ordinary” beach house on the Oregon coast.
“ThThere is an asset that should be an investment, and the source of the joy was truly an incredible amount of friction, pain and unforeseen cost, ”Jett told TechCrunch. “It was a difficult asset to make liquids.”
The friction and pain she mentioned included discussions of scheduling, capital investments and stress when one of the co-owners needed liquidity but none of the others wanted to buy them.
The pain part involves a lot of things Picasso is trying to resolve, Jet believes. By managing the entire co-ownership process, owners don’t have to deal with the “headache” of ensuring maintenance, furnishings and other holidays.
“We’ve developed a very innovative scheduling solution for SmartStain, which empowers calendars to be distributed evenly across ownership groups so that each co-owner has access to fair and equitable access to the property during the year,” Ellis told TechCrunch.
In other words, Picasso is effectively a mediator between co-owners, making Jet a very attractive model.
Also, she said, Softbank was drawn to the opportunity to “create a whole new category of home ownership.”
“This is something that can fundamentally enrich the lives of millions of people,” she told TechCrunch, “and help them realize their dream of co-ownership.”