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SoftBank leads $125M round for Pacaso, which splits ownership of vacation homes and has sparked controversy in Wine Country

It’s been less than a year since Pacaso officially launched. But the fast-growing real estate startup has already hit a triple-digital revenue run rate, attracted big-name investors — and caused an uproar among longtime residents in areas such as…

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This Sonoma Valley home purchased by Pacaso was the subject of controversy after local residents voiced their displeasure with Pacaso. (Pacaso Photo)

It’s been less than a year since Pacaso officially launched. But the fast-growing real estate startup has already hit a triple-digital revenue run rate, attracted big-name investors — and caused an uproar among longtime residents in areas such as Napa Valley where it buys vacation homes.

Pacaso on Tuesday announced a $125 million funding round led by SoftBank via its $40 billion Vision Fund 2. SoftBank has backed the likes of Opendoor, DoorDash, Coupang, Didi, and other highly-valued tech companies. Its investment in Pacaso is a vote of confidence in the year-old startup founded by former Zillow Group CEO Spencer Rascoff and dotloop founder Austin Allison.

The Series C round, which also included participation from top real estate investor Fifth Wall, values Pacaso at $1.5 billion. Total equity funding to date is $217 million, including a $75 million cash infusion just six months ago.

Pacaso (pronounced like “Picasso”) uses software and data to make it easier for more people to own a vacation home by splitting ownership into several different pieces as part of an LLC — anywhere from two to eight owners.

Pacaso will sometimes buy a home and then find owners; it also buys homes after enough people show interest in a given property. It then serves as the owner representative on behalf of the group, handling various logistics such as maintenance, financing, legal, and more. Its software platform helps owners with scheduling and booking.

The company makes money by charging owners a 12% service fee at the time of purchase, plus a $99/month management fee.

The idea is to make it possible for more people to own a vacation home — at least part of one — and reduce the hassles that can come with co-ownership.

Rascoff, who left Zillow in 2019, called Pacaso’s product-market fit “extraordinary.”

“This product has struck a nerve, and it is exciting to see,” Rascoff wrote in a LinkedIn post.

But not everyone is so excited about Pacaso’s business.

Residents of St. Helena, Calif., a city in Napa Valley, at a rally to voice their support against Pacaso entering the neighborhood. (Photo courtesy of Stop Pacaso Now)

A group called Stop Pacaso Now has formed in California’s Wine Country, started by local residents who say the company is “the newest way for Silicon Valley bros and venture capital vultures to make a quick buck at your expense: By turning your neighbor’s house into what’s basically a glorified timeshare.”

Pacaso sparked controversy earlier this year after buying homes that locals say were part of the workforce housing inventory. The company responded by saying it would resell the house to a sole owner, and would only buy properties in the area valued at more than $2 million, Inman reported.

“We despise the company,” said David Appelbaum, a longtime tech exec who has lived in Sonoma County for 23 years and is part of the protest group. He said Pacaso is “trying to sneak around the existing rules and regulations against short-term vacation occupancy.”

Pacaso is adamant that it does not operate a timeshare model, which Allison described as “commercial hotel developments” with hundreds of rooms and thousands of members. Pacaso, on the other hand, lets people actually buy a piece of real estate versus just time, he said. Its model also prohibits rental activity and large disruptive parties.

“It’s like comparing a bicycle to a commercial bus,” Allison said. “They’re completely different types of of asset classes altogether.”

The debate is now playing out in federal court. Pacaso sued the city of St. Helena in Napa Valley earlier this year after it banned the company for violating laws prohibiting timeshares. The case is still pending.

Allison said the backlash is caused by “misinformation” about Pacaso contributing to the housing affordability crisis. He argues that the company’s co-ownership model redirects vacation home demand away from the median tier to luxury properties, thus opening up moderately priced home opportunities for local buyers.

“It’s actually part of the housing solution, not part of the problem,” Allison said.

The CEO also said most vacation homes sit vacant for a majority of the year, while Pacaso homes have a 90-to-95 percent utilization rate.

“It’s better to have homes utilized year-round to support the local economy,” he said.

Appelbaum doesn’t buy that argument.

“You’re not a co-owner. You’re a transient vacation occupant,” he said. “You’re not joining local groups, you’re not sending your kids to school. You’re not a member of the community. You are coming here for a two-week vacation and then leaving.”

Some of Pacaso’s leadership team. Co-founders Spencer Rascoff (first row, second from left) and Austin Allison (first row, center) previously worked at Zillow Group. (Pacaso Photo)

Pacaso announced today that annualized revenue run rate has hit $330 million. In the second quarter of this year, Pacaso drew 1.8 million visits to its website and mobile app, up nearly 200 percent from the prior quarter. Its distributed team across 20 states has also grown from 30 people to more than 120 since January.

Pacaso declined to share specific metrics on the number of owners or houses sold, but said it has helped “hundreds” of people find second homes. It manages nearly $200 million in real estate assets. The company landed $1 billion in debt in March.

The startup is riding tailwinds from rising vacation home sales, driven in part by the pandemic and shift to remote work. Vacation home sales rose 16.4 percent year-over-year in 2020, and 57.2 percent during the first four months of this year compared to the same period in 2020, according to the National Association of Realtors.

And even if the real estate market cools down from record levels, Pacaso’s model becomes “more interesting in a softer market than a hot market, because it’s a more responsible way to own,” said Allison, who sold real estate document signing service dotloop to Zillow in 2015.

“In moments of correction, people don’t stop living, they just dial back the way they spend,” he said.

Owners must hold on to their share of a vacation home for at least a year, but can then sell it at any time — either for a profit, or a loss, depending on housing prices.

Pacaso is now live in 25 destinations around the U.S. It plans to expand internationally for the first time later this year in Spain, and has plans to launch in Mexico and the Caribbean next year.

Gaingels, Greycroft, Global Founders Capital, Crosscut, and 75 & Sunny Ventures also participated in the Series C round. Other backers include former CEO of Amazon Worldwide Consumer Jeff Wilke; Sukhinder Singh Cassidy and Theresia Gouw of the Acrew Diversify Capital Fund; First American Financial; and Shea Ventures.

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CCP-Linked Virologist Fired After Transferring Ebola From Winnipeg To Wuhan Resurfaces In China – And Is Collaborating With Military Scientists

CCP-Linked Virologist Fired After Transferring Ebola From Winnipeg To Wuhan Resurfaces In China – And Is Collaborating With Military Scientists

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CCP-Linked Virologist Fired After Transferring Ebola From Winnipeg To Wuhan Resurfaces In China - And Is Collaborating With Military Scientists

A virologist who had a "clandestine relationship" with Chinese agents and was subsequently fired by the Trudeau government has popped back up in China - where she's conducting research with Chinese military scientists and other virology researchers, including at the Wuhan Institute of Virology, where she's allegedly studying antibodies for coronavirus, as well as the deadly Ebola and Niaph viruses, the Globe and Mail reports.

Xiangguo Qiu and her husband Keding Cheng were fired from the National Microbiology Laboratory in Winnipeg, Canada and stripped of their security clearances in July of 2019.

Declassified documents tabled in the House of Commons on Feb. 28 show the couple had provided confidential scientific information to China and posed a credible security threat to the country, according to the Canadian Security Intelligence Service.

The Globe found that Dr. Qiu’s name appears on four Chinese patent filings since 2020, two with the Wuhan Institute of Virology whose work on bat coronaviruses has placed it at the centre of concerns that it played a role in the spread of COVID-19 – and two with the University of Science and Technology of China, or USTC. The patents relate to antibodies against Nipah virus and work related to nanobodies, including against coronaviruses. -Globe and Mail

Canadian authorities began questioning the pair's loyalty, as well as the potential for coercion or exploitation by a foreign entity, according to more than 600 pages of documents reported by The Counter Signal.

Highlights (via CTVNews.ca):

  • Qiu and Cheng were escorted out of Winnipeg's National Microbiology Laboratory in July 2019 and subsequently fired in January 2021.
  • The pair transferred deadly Ebola and Henipah viruses to China's Wuhan Institute of Virology in March 2019.
  • The Canadian Security Intelligence Service assessed that Qiu repeatedly lied about the extent of her work with institutions of the Chinese government and refused to admit involvement in various Chinese programs, even when evidence was presented to her.
  • [D]espite being given every opportunity in her interviews to describe her association with Chinese entities, "Ms. Qiu continued to make blanket denials, feign ignorance or tell outright lies."
  • A November 2020 Public Health Agency of Canada report on Qiu says investigators "weighed the adverse information and are in agreement with the CSIS assessment."
  • A Public Health Agency report on Cheng's activities says he allowed restricted visitors to work in laboratories unescorted and on at least two occasions did not prevent the unauthorized removal of laboratory materials.
  • Cheng was not forthcoming about his activities and collaborations with people from government agencies "of another country, namely members of the People's Republic of China."

Following their firings, Qiu returned to China despite it being under a pandemic travel lockdown until January, 2023.

"It’s very likely that she received quite preferential treatment in China on the basis that she’s proven herself. She’s done a very good job for the government of China," said Brendan Walker-Munro, senior research fellow at Australia’s University of Queensland Law School. "She’s promoted their interests abroad. She’s returned information that is credibly useful to China and to its ongoing research."

More via the Globe and Mail;

Documents reviewed by The Globe show that Dr. Qiu is most closely aligned with the University of Science and Technology of China (USTC) in Hefei. In March, 2023, a document posted by a Chinese pharmaceutical company listed Dr. Qiu as second amongst “major completion personnel” on a project awarded by the Chinese Preventive Medicine Association for study related to an anti-Ebola virus therapeutic antibody. Most of the other completion personnel were associated with the Chinese People’s Liberation Army.

USTC was founded by the Chinese Academy of Sciences and initially established to build up Chinese scientific expertise useful to the military, which at the time was pursuing technology to build satellites, intercontinental ballistic missiles and atomic bombs. The university has continued to maintain close military ties.

The document says Dr. Qiu works for USTC. Jin Tengchuan, the principal investigator at the Laboratory of Structural Immunology at USTC, lists her as a co-inventor on a patent. Mr. Jin did not respond to requests for comment.

A person who answered the phone at USTC told The Globe, “I don’t have any information about this teacher.”

In 2012, USTC signed a strategic co-operation agreement with the Army Engineering University of the People’s Liberation Army, designed to strengthen research on cutting-edge technology useful for communications, weaponry and other national-defence priorities.

Dr. Qiu is also listed as a 2019 doctoral supervisor for students studying virology at Hebei Medical University.

Well, that makes me wonder what circumstances she was under when she emigrated to Canada. Why did she come?” asked Earl Brown, a professor emeritus of biochemistry, microbiology and immunology at the University of Ottawa’s faculty of medicine who has worked extensively in China in the past. “People leave for more freedom from China, or to make more money. But China keeps tabs on most people so I am not sure if she came over to infiltrate or whether she came and the infiltration happened later through contact with China.”

It may be impossible to answer that question. Three former colleagues at the National Microbiolgy Lab have indicated that Dr. Qiu and her husband were diligent and pleasant to deal with, but largely kept to themselves outside of work. They say Dr. Qiu was a brilliant scientist with a strong work ethic, although her English was weak. The Globe is not identifying the three who did not want to be named.

Dr. Qiu is a medical doctor from Tianjin, China, who came to Canada for graduate studies in 1996. She started at the University of Manitoba, but began working at the national lab as a research scientist in 2006, working her way up to become head of the vaccine development and antiviral therapies section in the National Microbiology Laboratory’s special pathogens program.

She was also part of the team that helped develop ZMapp, a treatment for the deadly Ebola virus, which killed more than 11,000 people in West Africa between 2014 and 2016.

“My sense is this was part of a larger strategy by China to get access to our innovation system,” said Filippa Lentzos, an associate professor of science and international security at King’s College London. “It was a way for them to to find out what was going on in Canada’s premier lab.”

Initially trained as a medical doctor, Dr. Qiu graduated in 1985 from Hebei University in the coastal city of Tianjin, which lies southeast of Beijing. Dr. Qiu went on to obtain her master of science degree in immunology at Tianjin Medical University in 1990.

Her career at Canada’s top infectious disease lab in Winnipeg began in 2003, only four years after Ottawa opened this biosafety level 4 facility at the Canadian Science Centre for Human and Animal Health.

Over time, she built up a reputation for academic collaboration, particularly with China. It was welcomed by management who felt her work was helping build a name internationally for the National Microbiology Lab.

By the time Canadian officials intervened in 2018 and began investigating, documents show, Dr. Qiu was running 44 separate projects at the Winnipeg lab, an uncommonly large workload.

Her work with former colleague and microbiologist Gary Kobinger vaulted Dr. Qiu into the international spotlight. The pair developed a treatment for Ebola, one that in its first human application led to the full recovery of 27 patients with the infection during a 2014 outbreak in Liberia.

Mr. Kobinger’s career continued to soar and he is now director of the Galveston National Laboratory, a renowned biosafety level 4 facility in Texas. In 2022, he told The Globe that it was “heartbreaking” to see what had happened to his colleague. He declined to speak for this article.

“She had lost a lot of weight with all the stress. She was so convinced that this was all a misunderstanding … and she would go back to her job,” he said in 2022. “ Her career has been destroyed with all this. She was one of the top female Canadian scientists of virology and Canada has lost that.”

Over a period of 13 months, though, the Chinese-Canadian microbiologist and her biologist husband’s lives were turned upside down.

She went from being feted at Ottawa’s Rideau Hall with a Governor-General’s Award in May, 2018, to being locked out of the Winnipeg lab in July, 2019 – the high-security facility where she had made her name as a scientist in Canada. By January, 2021, she and Mr. Cheng were fired.

Last month, after being pressed into explaining what happened, the Canadian government finally disclosed the reasons for this extraordinary dismissal: CSIS found the pair had lied about and hid their co-operation with China from Ottawa.

A big question remains following their departure: Why would Dr. Qiu risk her career, including the stature associated with developing an Ebola treatment, for China?

Read the rest here...

Tyler Durden Thu, 03/21/2024 - 18:40

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International

You can now enter this country without a passport

Singapore has been on a larger push to speed up the flow of tourists with digital immigration clearance.

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In the fall of 2023, the city-state of Singapore announced that it was working on end-to-end biometrics that would allow travelers passing through its Changi Airport to check into flights, drop off bags and even leave and exit the country without a passport.

The latter is the most technologically advanced step of them all because not all countries issue passports with the same biometrics while immigration laws leave fewer room for mistakes about who enters the country.

Related: A country just went visa-free for visitors with any passport

That said, Singapore is one step closer to instituting passport-free travel by testing it at its land border with Malaysia. The two countries have two border checkpoints, Woodlands and Tuas, and as of March 20 those entering in Singapore by car are able to show a QR code that they generate through the government’s MyICA app instead of the passport.

A photograph captures Singapore's Tuas land border with Malaysia.

Here is who is now able to enter Singapore passport-free

The latter will be available to citizens of Singapore, permanent residents and tourists who have already entered the country once with their current passport. The government app pulls data from one's passport and shows the border officer the conditions of one's entry clearance already recorded in the system.

More Travel:

While not truly passport-free since tourists still need to link a valid passport to an online system, the move is the first step in Singapore's larger push to get rid of physical passports.

"The QR code initiative allows travellers to enjoy a faster and more convenient experience, with estimated time savings of around 20 seconds for cars with four travellers, to approximately one minute for cars with 10 travellers," Singapore's Immigration and Checkpoints Authority wrote in a press release announcing the new feature. "Overall waiting time can be reduced by more than 30% if most car travellers use QR code for clearance."

More countries are looking at passport-free travel but it will take years to implement

The land crossings between Singapore and Malaysia can get very busy — government numbers show that a new post-pandemic record of 495,000 people crossed Woodlands and Tuas on the weekend of March 8 (the day before Singapore's holiday weekend.)

Even once Singapore implements fully digital clearance at all of its crossings, the change will in no way affect immigration rules since it's only a way of transferring the status afforded by one's nationality into a digital system (those who need a visa to enter Singapore will still need to apply for one at a consulate before the trip.) More countries are in the process of moving toward similar systems but due to the varying availability of necessary technology and the types of passports issued by different countries, the prospect of agent-free crossings is still many years away.

In the U.S., Chicago's O'Hare International Airport was chosen to take part in a pilot program in which low-risk travelers with TSA PreCheck can check into their flight and pass security on domestic flights without showing ID. The UK has also been testing similar digital crossings for British and EU citizens but no similar push for international travelers is currently being planned in the U.S.

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International

This country became first in the world to let in tourists passport-free

Singapore has been on a larger push to speed up the flow of tourists with digital immigration clearance.

Published

on

In the fall of 2023, the city-state of Singapore announced that it was working on end-to-end biometrics that would allow travelers passing through its Changi Airport to check into flights, drop off bags and even leave and exit the country without a passport.

The latter is the most technologically advanced step of them all because not all countries issue passports with the same biometrics while immigration laws leave fewer room for mistakes about who enters the country.

Related: A country just went visa-free for visitors with any passport

That said, Singapore is one step closer to instituting passport-free travel by testing it at its land border with Malaysia. The two countries have two border checkpoints, Woodlands and Tuas, and as of March 20 those entering in Singapore by car are able to show a QR code that they generate through the government’s MyICA app instead of the passport.

A photograph captures Singapore's Tuas land border with Malaysia.

Here is who is now able to enter Singapore passport-free

The latter will be available to citizens of Singapore, permanent residents and tourists who have already entered the country once with their current passport. The government app pulls data from one's passport and shows the border officer the conditions of one's entry clearance already recorded in the system.

More Travel:

While not truly passport-free since tourists still need to link a valid passport to an online system, the move is the first step in Singapore's larger push to get rid of physical passports.

"The QR code initiative allows travellers to enjoy a faster and more convenient experience, with estimated time savings of around 20 seconds for cars with four travellers, to approximately one minute for cars with 10 travellers," Singapore's Immigration and Checkpoints Authority wrote in a press release announcing the new feature. "Overall waiting time can be reduced by more than 30% if most car travellers use QR code for clearance."

More countries are looking at passport-free travel but it will take years to implement

The land crossings between Singapore and Malaysia can get very busy — government numbers show that a new post-pandemic record of 495,000 people crossed Woodlands and Tuas on the weekend of March 8 (the day before Singapore's holiday weekend.)

Even once Singapore implements fully digital clearance at all of its crossings, the change will in no way affect immigration rules since it's only a way of transferring the status afforded by one's nationality into a digital system (those who need a visa to enter Singapore will still need to apply for one at a consulate before the trip.) More countries are in the process of moving toward similar systems but due to the varying availability of necessary technology and the types of passports issued by different countries, the prospect of agent-free crossings is still many years away.

In the U.S., Chicago's O'Hare International Airport was chosen to take part in a pilot program in which low-risk travelers with TSA PreCheck can check into their flight and pass security on domestic flights without showing ID. The UK has also been testing similar digital crossings for British and EU citizens but no similar push for international travelers is currently being planned in the U.S.

Read More

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