Marid-based proptech startup Vivla has raised $30 million ($3.5 million equity/$26.5 million debt funding) in a pre-seed round. The capital will be used to further develop the platform and provide the spark for an intended asset acquisition spree.
Similar to France’s Altacasa, and American player Pacaso, Vivla is seeking to meet the booming demand for second home properties. Just over a year ago, Mansion Global revealed that during 2020, the demand for second homes soared by 58.8%, with applications for second home mortgages peaking in September, up 118% year over year.
With the world seemingly getting better for a few moments, and then bad again, and then are-you-kidding-me bad, well, I’m sure you can put two and two together and see where the trend line on this chart is headed.
With Vivla’s offer, each property is acquired through an LLC and the collective of owners can choose the number of fractions or shares to buy, anywhere from 1/8 to 1/2. Each share then guarantees 6 weeks of use throughout the year.
A financial example: a €300,000 investment in a €2.4 million property in Ibiza would result in 12.5% ownership, and 6 weeks of guaranteed relaxation. €600,000, a 25% ownership, 12 weeks, etc., etc., etc.
The firm has taken into account that while white-hot in the summer months, 6 weeks on Ibiza over January and February might not be exactly ideal, and a maximum of 1 week booking time during high seasons are permitted. Partial ownership, partial choice.
This process not only makes an otherwise out of reach home a reality for some, but it does so all without the need to source and validate a suitable property, engage in the tedium that purchasing a second, or third, or fourth home can be, not be involved in the management of the property, and all maintenance costs are spread amongst fractional owners. According to Vivla, shareholders are able to liquidate their investment at any time.
"After a minimum latency period of 12 months."
The firm is already active in Madrid, Marbella, Sotogrande, Ibiza, and Mallorca, and is gearing up to launch services in the Canary Islands, Costa Brava, and Costa Blanca.
As part of the $30 million pre-seed funding round, Vivla plans on heading out on a shopping spree, with the company quoting plans to transact €100 million in home purchases in the next 24 months.
Although the process of co-owning a second home has been around for decades, Vivla CEO and co-founder Carlos Emilio Gomez comments, “Fractional home ownership is a new category of real estate that is set to transform the second home sector. It was created in response to changing social consumption patterns and the bursting post-Covid demand that has created a new generation of buyers looking to enjoy the benefits of homeownership while avoiding the hassles and constraints that typically come with it."
In addition to Samaipata’s lead Fasanara Ventures, FJ Labs, Extension Fund, football player and investor César Azpilicueta, Trade Republic country manager and Accel scout Kintxo Cortés, Endeavor president Adrián Garcia-Aranyos, and several other undisclosed angel investors also participated.