There’s more investment action in the
second home co-ownership space. Ember is now the fourth such startup to raise
capital in the last six months.
The Utah-based company has raised
$17.4 million led by Peter Thiel – a venture capitalist that co-founded PayPal
and was an early investor in Facebook. Additional investors include Pando
Ventures and prior investors including the former CEO and founder of Vivint
Smart Homes Todd Pedersen, former CEO of Progressive Leasing Ryan Woodley and founder
and chief innovation officer of Progressive Leasing Curt Doman.
In September, three similar startups
also got funding: Mexico-based
Kokomo raised $56 million, U.S.-based
Pacaso raised $125 million and London-based
Altacasa raised €2 million.
Founded in June 2021, Ember buys or
builds luxury vacation homes valued between $1.5 and $5 million. The company
then creates a property-specific limited liability corporation so the home can
be sold in individual shares costing between $100,000 to $500,000, providing a
minimum of 45 nights of use per year.
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Owners
pay a monthly fee to Ember that covers maintenance and management and have
access to an in-market concierge. The homes are fully furnished and many come
with amenities such as pools, hot tubs and entertainment spaces.
“Ember
is enabling the dream of vacation homeownership for millions of people and
we’re making the experience radically simple,” says Kurt Avarell, Ember
co-founder and CEO.
“This
idea was born out of my personal experience co-owning a houseboat on Utah’s
Lake Powell with friends and family for the past decade. We recognize that so
many families want vacation homes, but their dream home is just out of reach.
Ember intends to make second home ownership attainable, affordable, and
enjoyable for millions of want-to-be second homeowners.”
Ember
currently has listings in Oregon, Utah, New Mexico, California and Texas and
has plans to expand rapidly to new markets. The company also plans to offer
financing later this year.