Airbnb Venture Funding Said to Value Travel-Rental Startup at $1.3 Billion
Airbnb Inc., the website that lets homeowners turn extra bedrooms into vacation rentals, raised $112 million in a funding round led by venture capital firm Andreessen Horowitz.
The investment values the San Francisco-based company at $1.3 billion, said a person with knowledge of the matter, who declined to be named because the valuation wasn’t made public. Russia’s Digital Sky Technologies and venture firm General Catalyst Partners participated in the financing.
Founded in 2008 by Brian Chesky, Joe Gebbia and Nathan Blecharczyk, Airbnb lets users rent out a couch, bedroom or full house. The company, which makes money by charging a fee for each transaction, lists properties in 16,701 cities in 186 countries, according to its website. The funding will be used to bolster Airbnb’s workforce and sign up more homes and apartments around the world.
“It’s a very rapidly growing company that is competing in a big market and appears to be the leader in the space,” said Jeff Jordan, a partner at Menlo Park, California-based Andreessen Horowitz, who led the firm’s investment. “A big use of the proceeds is to go global fast.”
The company has raised a total of $119.8 million. Airbnb first received capital in 2009 from startup incubator Y Combinator and later that year from Sequoia Capital. Andreessen Horowitz is contributing $60 million of the new round.
Airbnb spokesman Christopher Lukezic declined to comment on the valuation.
The funding comes less than a month after vacation-rental site HomeAway Inc. sold shares to the public. The Austin, Texas- based company has jumped 53 percent since its initial public offering, and is now valued at $3.3 billion on the Nasdaq Stock Market.
Bloomberg LP, the parent company of Bloomberg News, is an investor in Andreessen Horowitz.
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