Co-own Luxury Vacation Homes | kocomo

The Appeal of Vacation Home Ownership

The desire for a vacation home is nearly universal. Kocomo, a Mexico City-based startup, is working to transform this aspiration into a tangible possibility for a wider audience.

The company recently secured $6 million in equity and $50 million in debt financing, propelling its mission forward. Kocomo aims to redefine vacation home ownership by facilitating cross-border co-ownership of luxury properties, moving beyond traditional timeshare models.

Kocomo’s Innovative Approach

Kocomo’s founders – representing Colombian, British, Mexican, American, and Panamanian backgrounds – envision a marketplace where individuals can buy, own, and sell fractional interests in high-end homes. Essentially, they are striving to make vacation home ownership “an attainable reality for more people globally.”

Since launching a beta version of its website in May after operating in stealth mode, Kocomo has been engaging with a select group of clients from its waiting list.

Initially, the company is concentrating on attracting American and Canadian buyers interested in properties in Mexico, the Caribbean, and Costa Rica, with plans for future expansion into Europe, according to co-founder and CEO Martin Schrimpff.

Investment and Backing

The equity financing was co-led by AllVP and Vine Ventures, with participation from Picus Capital, Fontes – QED, FJ Labs, and Clocktower Technology Ventures. JAWS – the family office of Starwood Capital Group Chairman Barry Sternlicht – also contributed.

Notably, founders from four prominent Latin American unicorns invested in the equity round, including Mate Pencz and Florian Hagenbuch (Loft), Oskar Hjertonsson (Cornershop), Carlos Garcia (Kavak), and Sergio Furio (Creditas).

The Genesis of Kocomo

The COVID-19 pandemic prompted many to re-evaluate their priorities, and for Martin Schrimpff, spending quality time with loved ones became paramount. This led him to actively seek a vacation home.

However, he found the existing options unsatisfactory. He felt that purchasing an entire vacation home for limited use was inefficient and stressful, and finding an affordable, quality property in Mexico proved challenging.

Furthermore, repeated experiences with Airbnb rentals, characterized by inconsistent quality and a lack of professional management, were also unappealing. These frustrations, shared with his future co-founders, ultimately sparked the creation of Kocomo.

Comparison to Pacaso

Kocomo’s business model shares similarities with Pacaso, an early-stage proptech company based in the U.S.

However, Schrimpff highlights a key distinction: Pacaso primarily focuses on second homes within a short driving distance of owners’ primary residences. Kocomo, conversely, targets cross-border vacation homes accessible via a two- to three-hour flight.

He also emphasizes that Kocomo addresses more complex challenges inherent in cross-border transactions. Additionally, Kocomo provides owners with the option to rent out their allocated weeks.

A Co-Ownership Model for Luxury

Drawing a parallel to NetJets’ shared ownership model for private air travel, Kocomo aims to apply a similar concept to vacation homes. CFO and co-founder Tom Baldwin explains that their platform allows multiple individuals to collectively own and enjoy a luxury property, sharing all associated costs without the typical burdens of ownership.

“We call this the smarter way to own a home abroad,” Baldwin stated. “Buying a whole home for just a few weeks a year feels like more hassle than it’s worth while spending money on a rental is a waste and an expense, not an asset.”

Comprehensive Management Services

According to co-founder and CPO Graciela Arango, Kocomo handles all legal and administrative aspects of home acquisition and ownership. This includes purchasing properties through LLCs, vetting potential co-owners, equitably allocating time, and providing ongoing property management and maintenance services – encompassing utilities, landscaping, and preventative upkeep.

Ownership vs. Timeshares

A crucial difference between Kocomo and traditional timeshares lies in the nature of ownership. Participants in Kocomo actually own a portion of the real estate, meaning their investment appreciates with the property’s value.

Future Plans and Expansion

The company intends to use the equity capital to expand its nine-person team, prioritizing roles in sales, marketing, and engineering. Investment in the platform’s underlying technology is also planned. The debt financing will facilitate the acquisition of approximately 20 luxury vacation properties in desirable Mexican locations near international airports, such as Los Cabos, Punta Mita, and Tulum.

Future expansion will target other vacation destinations within direct flying distance of the U.S., including Costa Rica and the Caribbean. Long-term, Kocomo envisions opportunities in ski resorts, Mediterranean beach destinations, and cultural hubs like Paris, London, Madrid, and Berlin.

Kocomo is also finalizing a partnership with a financial institution to offer financing options for clients purchasing ownership interests in properties on its platform.

A Focused Approach to Growth

Schrimpff emphasizes a deliberate approach to growth, prioritizing quality over rapid scaling. “Whereas many startups coming out of stealth-mode focus on going from 0 to a high number of sales quickly, our primary focus initially is to go from 0 to 10 Kocomo qualified co-owners.”

He acknowledges that, despite being a B2C company, Kocomo’s high ticket price (over $200,000) results in a sales cycle more akin to that of a B2B startup.

Targeting the Tech Community

Kocomo is observing significant interest from individuals within the tech industry, a trend also noted by Pacaso.

Schrimpff believes this demographic is particularly receptive to the model due to their flexible schedules, remote work capabilities, and openness to innovative ownership solutions.

Investor Confidence

AllVP’s Antonia Rojas believes that Kocomo is leveraging technology to deliver “an evolved model of real estate ownership which taps into deep-seated changes in the way consumers organize and prioritize work, family and free time in a post-COVID world.”

Investors were also impressed by the team’s experience and expertise. Schrimpff previously founded and sold PayU, a global payments business. Baldwin has a background in Goldman Sachs banking and venture capital. Arango is a Harvard Business School graduate with experience at IDEO. Brian Requarth, co-founder & non-executive chairman, previously founded real estate classifieds company Vivareal.