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Alex Webb

Airbnb’s $1 Billion Bargain Is a Sign of Things to Come

Now that tech valuations aren't so bubbly, there's an opening for private equity firms.

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Photographer: Lionel Bonaventure/AFP via Getty Images

Private equity has often found it tough to invest its $1.3 trillion of committed capital in technology companies.

For all of their desire to get into the game, tech’s bubbly valuations meant private equity investors often couldn’t justify writing big checks, and some of the hottest startups’ lack of profitability made it hard to raise the debt on which the industry depends to fund its deal-making.