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XPacaso Nabs Millions to Sell Shares in Luxurious Second Homes as Neighbors Protest
Harri is dot.LA's senior finance reporter. She previously worked for Gizmodo, Fast Company, VentureBeat and Flipboard. Find her on Twitter and send tips on L.A. startups and venture capital to harrison@dot.la.

Pacaso wants to sell you a stake in a top-tier second home, and it just raised $125 million to do so — that is, if you're among the minority of homeowners who can afford one.
The startup, founded by former Zillow executives Austin Allison and Spencer Rascoff, turns luxurious homes such as this vast, seaside Malibu estate into limited liability companies. It then splits them into fractional shares, selling to up to eight different buyers apiece. Pacaso takes a 12% cut of the purchase price and charges members $99 per month each to handle everything from furnishing to lawn care. Partial homeowners can divvy the time they spend on the property using the startup's apps and website.
The latest round values Pacaso at $1.5 billion, up from the $1 billion valuation the real estate tech startup hit in March. Softbank led the deal, with participation from other firms including Greycroft, Crosscut, Fifth Wall, Global Founders Capital, LGBTQ-focused syndicate Gaingels, and Rascoff's fund, 75 and Sunny. Rascoff also co-founded this very website, along with Hotwire.com.
Since it launched just shy of a year ago, Pacaso has raised more than $215 million. The funds have fueled its expansion into 25 destinations, such as Miami and Aspen. Next up, the firm is charting a path into Europe, starting with Spain later this year.
"In January, we were about 30 people. Today we're well over 120 people," Allison told dot.LA, adding that in the last quarter 2 million people visited the company's website. "Our annualized revenue run rate is now north of $330 million, and that's from zero one year ago." Allison declined to share the number of homes Pacaso has sold to date and estimates Pacaso's customer base is "in the hundreds."
Pacaso's debut coincided with a second-home market boom, as white-collar workers seized on pandemic-era remote work policies and friendly mortgage rates. But amid its growth, the startup has drawn ire from many newfound neighbors, who argue the company is building a "glorified timeshare" business in their community.
A petition against Pacaso's presence in Sonoma neighborhoods, known for their elaborate vineyards, has garnered 2,969 signatures. Its organizers, Stop Pacaso Now, call the startup "the newest way for Silicon Valley bros and venture capital vultures to make a quick buck at your expense." The group warns, "You may not realize the house next door sold to Pacaso until you see a revolving cast of guests pulling up every couple of days or weeks."
Stop Pacaso Now did not respond to dot.LA's request for comment.
Pacaso says it offers "anything but" timeshares, and it's currently waging a legal fight over local timeshare rules in California's wine country. St. Helena City Attorney Ethan Walsh cautioned Pacaso in February that "it appears to be operating, facilitating, and selling timeshares under state law and the City's code." He added, "Simply calling them co-ownership arrangements does not change that fact."
Allison says that Pacaso empowers "more people to realize their second-home dream," while filling properties that would otherwise sit unoccupied for most of the year.
"We're consolidating demand. We're taking second-home owners who would otherwise be competing in the median tier and we're moving them into the luxury tier, right? It's better to have six or eight families owning one luxury second home than to have those same six or eight families buying up six or eight separate median-priced homes."
Allison says Pacaso will be good for neighborhoods and local businesses. Startups catering to vacationers such as Airbnb have driven up local rent prices and contributed to housing shortages, according to researchers at the University of Cologne. The neighbors fighting back argue their communities will experience a similar outcome.
Pacaso's founders, however, are so convinced their service is innovative that they baked the essence right into the name, evoking the legacy of experimental painter Pablo Picasso.
Pacaso is just one of many companies that have been launched by former Zillow staffers in recent years. They include Mill Valley-based Glassdoor, a site for posting employee reviews and candid assessments of current and former employers, and San Francisco-based Divvy Homes, which aims to convert renters into homeowners.
Harri is dot.LA's senior finance reporter. She previously worked for Gizmodo, Fast Company, VentureBeat and Flipboard. Find her on Twitter and send tips on L.A. startups and venture capital to harrison@dot.la.
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Activision Buys Game Studio Proletariat To Expand ‘World of Warcraft’ Staff
Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him
Activision Blizzard intends to acquire Proletariat, a Boston-based game studio that developed the wizard-themed battle royale game “Spellbreak.”
VentureBeat first reported that the Santa Monica-based publisher was exploring a purchase, noting its ongoing mission to expand the staff working on Blizzard’s hit massively multiplayer online game “World of Warcraft,” which launched in 2004.
Proletariat’s team of roughly 100 people will be merged into Activision’s “World of Warcraft” team to work on its upcoming expansion game. Though there’s no release date as yet for the title, “World of Warcraft: Dragonflight” is expected to debut before the end of this year.
Activision did not immediately return a request for comment. Financial terms of the deal were not available.
This Proletariat deal is Activision's latest push to consolidate its family tree by folding its subsidiary companies in under the Blizzard banner. More than 15 years after it bought out New York-based game developer Vicarious Visions, Activision merged the business into its own last year, ensuring that the studio wouldn’t work on anything but Blizzard titles.
The deal could also have implications for workers at Activision who have looked to unionize. One subsidiary of Activision, Wisconsin-based Raven Software, cast a majority vote to establish its Game Workers Alliance—backed by the nationwide Communications Workers of America union—in May.
Until recently, Activision has remained largely anti-union in the face of its employees organizing—but it could soon not have much of a say in the matter once it finalizes its $69 billion sale to Microsoft, which said publicly it would maintain a “neutral approach” and wouldn’t stand in the way if more employees at Activision expressed interest in unionizing after the deal closes.
Each individual studio under the Activision umbrella would need to have a majority vote in favor of unionizing to join the GWA. Now, Proletariat’s workforce—which, somewhat ironically given its name, isn’t unionized—is another that could make such a decision leading up to the Microsoft deal’s expected closing in 2023.
Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him
Snap Officially Launching ‘Snapchat Plus’ Subscription Tier
Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
Snap is officially launching Snapchat Plus, a paid subscription plan on Santa Monica-based social media company’s flagship app.
Snap is now the latest media company to tack a “plus” to the end of its name—announcing Wednesday that the new service will provide users with “exclusive, experimental and pre-release features” for the price of $3.99 a month. The first features available to paying subscribers include the ability to customize the style of app’s icon, pin a “BFF” to the top of their chat history and see which users have rewatched a story, according to The Verge.
The new product arrives after Snap confirmed reports earlier this month that it was testing Snapchat Plus—though the version that it has rolled out does not incorporate the rumored feature that would allow subscribers to view a friend’s whereabouts over the previous 24 hours.
Snapchat Plus will initially be available to users in the U.S., Canada, U.K., France, Germany, Australia, New Zealand, Saudi Arabia and the United Arab Emirates. While certain features will remain exclusive to Plus users, others will eventually be released across Snapchat’s entire user base, Snap senior vice president of product Jacob Andreou told The Verge. (Disclosure: Snap is an investor in dot.LA.)
The subscription tier introduces a new potential revenue stream for Snap, which experienced a “challenging” first quarter marked by disruptions to its core digital advertising market. However, Andreou told The Verge that the product is not expected to be a “material new revenue source” for the company. He also disputed that Snap was responding to its recent economic headwinds, noting that Snap had been exploring a paid offering since 2016.
Despite charging users, Snapchat Plus does not include the option to turn off ads. “Ads are going to be at the core of our business model for the long term,” Andreou said.
Snap is not the first popular social media platform to venture into subscriptions: Both Twitter and Tumblr rolled out paid tiers last year, albeit with mixedresults.Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
Bling Capital’s Kyle Lui On How Small Funds Can Better Support Young Founders
On this episode of the LA Venture podcast, Bling Capital’s Kyle Lui talks about why he moved earlier stage in his investing and how investors can best support founders.
Lui joined his friend—and first angel investor—Ben Ling as a general partner at Bling Capital, which focuses on pre-seed and seed-stage funding rounds. The desire to work in earlier funding stages alongside someone he knew well drew him away from his role as a partner at multi-billion-dollar venture firm DCM, where he was part of the team that invested in Musical.ly, now known as TikTok.
Bling primarily focuses on entrepreneurs looking to raise around $1 million to $3 million who are often early in their careers as founders. Lui said Bling evaluates companies on characteristics that go beyond whether they like the founder or feel that the market looks good. Instead, he said they take a hard look at the available company data, and quickly respond.
“And we send it back to them and say, ‘Okay, this is what's working, what's not working’,” Lui said. “And then create the playbook for them on how to find product market fit and get to like, ‘These are the milestones you actually need to hit’.”
When considering companies, Lui said Bling looks at the founder, the market, the company’s current traction and differentiation while asking the founder the questions they would expect to get at Series A and Series B funding rounds.
“One thing that I really admire about what [Ling’s] built with Bling is the consistency and the processes and playbooks— everything from the way that we evaluate deals to the way that we work with our portfolio companies,” Lui said. “Everything is kind of around playbooks and operationalizing things and also iterating to do those processes better.”
As part of its work to support founders, Bling maintains an extensive product council, which connects tech executives with the founders in Bling’s portfolio. Bling also has created numerous self-serve resources for founders so they can easily tap into the fund’s network and shared knowledge.
“We have a bunch of playbooks that we introduce to companies around how to hire efficiently, how to negotiate with counterparties, how to think about the founding team, business development…We just have these different things that we start to train our entrepreneurs on,” Lui said.
dot.LA Editorial Intern Kristin Snyder contributed to this post.
Click the link above to hear the full episode, and subscribe to LA Venture on Apple Podcasts, Stitcher, Spotify or wherever you get your podcasts.