We’re honored to announce that we’ve secured $103.5 million in Series B funding to continue our trajectory toward becoming the largest and most trusted vacation rental management company in the world.
This is a landmark funding round in our industry. It’s the biggest Series B in the history of Oregon, one of the largest-ever in the Pacific Northwest, and one of the top 10 rounds nationally in 2017.
The magnitude of funding secured represents more than a vote of confidence in our business model; it’s an acknowledgement of a major shift in the hospitality space.
We’re entering a time of record demand for services that manage and market vacation rental properties. The short-term accommodations sector is growing twice as fast as the entire travel industry. Worth an estimated $138 billion in 2016, the vacation rental industry is expected to grow to a value of $194 billion by 2021. Investors are taking notice.
The surge in demand for hotel alternatives is one of the reasons why our friends at AirBnb were able to raise $112 million in their own Series B, why Google is testing a vacation rentals filter for hotel searches, and why China’s Tujia is now valued at $1.5 billion.
Last month, vacation rentals made their debut at Skift—the largest creative business conference in the global travel industry—when our co-founder and CEO Eric Breon took the stage alongside CEOs from Marriott International, Hilton Worldwide, and Delta Airlines.
It’s the dawn of a new age for the vacation rental industry and Vacasa is the fastest-growing company in the space.
Series B capital is awarded to companies that have demonstrated a model for sustainable growth in an emerging or transforming industry. Since Vacasa’s founding in 2009, we’ve experienced approximately 70% year-over-year growth. This growth has been a mix of organic (70%) and acquisitive (30%). That means our customers primarily find us through their friends or our marketing, but we sometimes buy other vacation rental management companies.
Riverwood Capital is our lead investor this round. But this isn’t the first time we’ve taken on funding. Our Series A round, led by Level Equity, was $40 million. We used that money to grow our team and expand our services across the U.S. and to international markets that are seeing a similarly dramatic increase in demand for trustworthy property management services.
“It is exceptionally rare to see a business of this scale growing this quickly and accelerating with such compelling and improving unit economics,” says Ben Levin, Co-founder and Co-CEO at Level Equity. “Vacasa has almost tripled its revenue and unit count in the two years since we invested while significantly increasing their geographic and technology footprint as well as senior team and brand. It’s a compelling growth story in one of the larger, most complicated, and most fragmented sectors in the broader travel market.”
The Next Stage
Being the stewards of so much investment money is a big responsibility, but our partners wouldn’t have given it to us if they didn’t believe in how we plan to spend it. We’d like to share that plan with you.
Here are a few things this funding will help us do:
Enhance our technology stack
Our industry-leading technology has always set us apart from the competition. We will invest a substantial portion of these funds into growing our engineering team and building the next generation of vacation rental technologies.
Create the world’s best homeowner experience
We plan to beef up our unparalleled local field teams and build the world’s best experience for our homeowners by providing new tools for our owners, guests, and staff.
Enrich guest experiences
Our one-of-a-kind guest experience is about to get even better both in the homes we manage and through our investments in local services.
Expand to new markets
We’re excited about offering guests the ability to stay at Vacasa homes in more markets both at home and abroad.
Become a global brand
We’re going big on brand. That means you’ll be hearing a lot more about Vacasa. You’ll also see improved experiences everywhere from our website to in our homes.
Help destination communities thrive
Supporting the communities where we operate has always been a priority here at Vacasa. This funding will help us grow the way we give back.
Over the next year, we plan to hire over 100 more colleagues around the world in roles ranging from housekeeper and engineer to translator. When you’re ready to fall in love with your job, we’d love to meet you.
Check out our available careers.