Overmoon Raises $80M, Launches Tax-Deferred Exchange Program for Qualified Vacation Home Owners to Defer Taxes and Enhance Returns

Overmoon, a tech-enabled vacation rental platform, today announced $80M in equity and debt funding from NFX, Khosla Ventures, Camber Creek, 1Sharpe, Sunsar Capital, and others. The funding includes $10M in venture to scale its technology development, $30M in real estate equity for down payments on homes, and $40M in debt financing.

The company also partnered with Flock, an Andreessen Horowitz-backed company, to launch Overmoon Exchange, an innovative program designed to offer vacation home owners significant tax, time, and investment benefits by contributing their home into Overmoon’s 721 Fund.

The exchange expands Overmoon’s existing business of providing reliably awesome vacation experiences that blend the best of hotels and rental homes.

Owners’ Problems: Time-Consuming Management and High Taxes

Many second home owners are fed up with the work needed to keep their properties rented out, but want to keep generating income and pass something along to their heirs. On top of this, many would like to sell but feel trapped by the significant tax consequences they’d incur by selling an appreciated property. This has led to a situation where vacation home owners are stuck in limbo between fully maximizing their home’s potential and selling it.

Overmoon Exchange: Offers Deferred Taxes and Enhanced Returns

To solve these problems, Overmoon Exchange is a fintech-enabled platform powered by Flock that leverages IRC Section 721, allowing owners to exchange their homes, on a pre-tax basis, for shares of the Overmoon 721 Fund. Leveraging Flock’s software, Overmoon uses its extensive experience running a tech-enabled vacation rental platform to manage and keep the properties rented out, generating income for the Overmoon 721 Fund.

Potential Benefits to homeowners include:

• Defer the capital gains tax that comes with selling an appreciated property

• Shed the burdens and costs of property management and maintenance

• Maintain regular passive income, in the form of fund distributions

• Enjoy the long-term appreciation of the real estate assets in the fund’s portfolio

• Reduce risk by exchanging the income of a single home for a fund of many homes

“After countless disappointing stays in short-term rentals, we launched Overmoon to give people the convenience of a rental home with the reliability of a great hotel,” explained Joe Fraiman, founder and CEO of Overmoon. “After spending years perfecting our formula, we’re thrilled to expand our platform to owners looking to free themselves of the time and expense of property ownership, while diversifying their investment, deferring taxes, and still having access to their vacation property.”

“This is a unique opportunity for owners to efficiently manage their estates, while maintaining passive income and real estate appreciation potential,” explained Pete Flint, General Partner of NFX and Founder of Trulia, who led the initial venture capital investment in Overmoon.

“Since launching just over two years ago, we’ve facilitated 721 Exchanges with hundreds of happy owners seeking the retirement solution for landlords,” explained Ari Rubin, CEO of Flock. “We have the utmost confidence in Overmoon to bring this unique solution to vacation rental owners around the country.”

To learn more and see if your home qualifies, please visit: https://exchange.overmoon.com/

About Overmoon

Overmoon is a tech-enabled vacation rental platform based in San Francisco. The company blends the best of what hotels have to offer - comfort, amenities, and concierge-level service - with the best of what vacation homes can offer - shared space for families and friends to gather and build lasting memories.

Learn more at https://www.overmoon.com/

This release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Overmoon 721 Fund. Any and all offers of securities will be made by means of a confidential private placement memorandum relating to the Overmoon 721 Fund. Certain statements made in this release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements and as such are based upon Overmoon’s current beliefs as to the performance, prospects and opportunities of the Overmoon 721 Fund. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements.

Contact Information

Riley Munks

Media Contact

NFX for Overmoon

riley@nfx.com