Avarell: Most second-home owners use properties only six to eight weeks yearly
Kurt Avarell · Rockstar Guitarist Launches SaaS, Breaks $3.6m in revenue, $30m valuation · Jun 30, 2022 · at 5:00
Kurt Avarell, co-founder and CEO of Ember, explains the underlying market inefficiency and thesis behind Ember's fractional vacation home ownership platform.
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“The downside is most second home owners don't use the home That often. And so you know, they're only, they think they're going to be there six months out of the year, but they end up only being there six to eight weeks out of the year.”
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More from Kurt Avarell
Avarell: Ember will '100%' surpass $100 million in GMV in 2022
“Oh yeah. Yeah, absolutely. Based on the current growth, a hundred percent.”
Avarell: Ember operates near breakeven with almost zero cash burn
“I can tell you, we operate pretty close to a breakeven. Like we've not burned hardly any cash. Most of the cash that we put on the balance sheet is to buy inventory.”
Avarell: Pacaso and Ember are the two dominant players in fractional ownership
“Right now it's basically the two big players in the space are Picasso and Ember. There are a couple others that are smaller but those are the two big ones.”
Avarell: Peter Thiel led Ember's Series A in $17.4M combined round
“So we closed a seed and an A, which we kind of announced together at a 17.4 million dollar financing. The A was led by Peter Thiel. So we were super excited about that to have him lead that financing. And we closed that in February.”
Avarell: Ember takes 12% markup on home purchase and furnishings
“Where we make the money is on that
You know, we're right now at 4.3 million dollars, the four million dollar purchase price of the home, 300,000 dollars of furnishings.
We take a 12% uplift.
So we'll take that 4.3, multiply it by 12%.
And that's where Embe…”