Bootstrapping to $100 Million: Vacasa Co-Founder Cliff Johnson (Part 7)

Sramana Mitra: At this point in 2015, what is the capitalization of the company? Have you continued to build it organically or have you taken financing? How did you scale the company?

Cliff Johnson: We’ve continued to build organically. We’re happy and profitable right now. That’s a good place to be. We do end up talking to different investors from time to time to get their story and their pitch on how they can help us in our journey. One of the things that we’re looking forward to in, probably, three or four years would be an IPO. If the right partner were to come along, that would be something we might consider taking on. Right now, we’re happy. We’re moving the company along but still growing at a fast pace.

We do have an acquisitions department as well and we’re focused on working with some other smaller management companies that have an owner who’s either ready to retire or, in a lot of cases, they’re overworked. They might be very passionate about one part of the business, but when they’re trying to do it all, it’s just too much for one person. That’s worked out really well. We actually had a good amount of acquisitions as well now that we’ve integrated within our company fairly seamlessly. That’s something we’re looking to continue to do as long as the opportunity is right.

Sramana Mitra: Why are you interested in an IPO? What does that do for you? Is it because you want to get liquidity? What’s the drive? IPO is a pain …

Cliff Johnson: That’s right. That’s why it’s a decision that we haven’t finalized yet. One of the things that we look at that would be an advantage in being able to set up a really interesting option plan for employees. We have all these home owners who would love to invest in us now that they’ve worked with us for a while. We’ve looked at what the best way is to set this up and also to set up our company in a position to reach that next level.

One of the things that we always look at is staying in our core business. There are all these side opportunities which are related to the vacation rental space. A good example might be a concierge type of business. It’s not something that we do right now because it’s not a core part of our business, but we might have some local partners that we work with.

Eric and I both love this space. We both want to be involved in Vacasa for as long as we can. At the same time, we also have ambitions about other businesses. He comes from a venture capital background. We both really appreciate people who have great ideas and a great work ethic. We look at how we could basically have other businesses that come from this business to support growth in the local communities where we work. If we can help somebody start their dream in one of these communities that would also then contribute to providing a better experience for our guest, that’s a great win all the way around. We don’t just envision this company being just a cash cow. What can we continue to do, as a company, to give back to the communities where we work and provide opportunities for entrepreneurs?

When we look at the potential that an IPO can bring, it’s really getting that outside investment to get us to the next level. To your point, it could also be a bad move. It restricts our ability to do some of those things that we want to do. It’s something we’re reviewing very carefully.

Sramana Mitra: It’s a very interesting story. Thank you for your time.

This segment is part 7 in the series : Bootstrapping to $100 Million: Vacasa Co-Founder Cliff Johnson
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