Airbnb Said to Pursue Valuation Above $10 Billion in New Fund-Raising Round
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Airbnb Said to Pursue Valuation Above $10 Billion in New Fund-Raising Round
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Re: Airbnb Said to Pursue Valuation Above $10 Billion in New Fund-Raising Round
#2If this goes through YC's total portfolio valuation has gone from $14b to over $27b in a couple months.
Re: Airbnb Said to Pursue Valuation Above $10 Billion in New Fund-Raising Round
#3why not IPO? I mean I think going public is terrifying and awful, but have to exit sometime right? if you raise at >$10B you would need to IPO at >$20B no?
Re: Airbnb Said to Pursue Valuation Above $10 Billion in New Fund-Raising Round
#4I still feel like there are going to be some major regulatory changes that will eventually hit these types of businesses. What we've generally seen is cities say no, then realize how much value there is but not know what to do about it, then say yes. What we haven't seen as much is the post-yes interaction, where additional taxes and regulations get established. Should be interesting.
Re: Airbnb Said to Pursue Valuation Above $10 Billion in New Fund-Raising Round
#5As a comparison point, Expedia has a current market cap of $9.79bn:
Re: Airbnb Said to Pursue Valuation Above $10 Billion in New Fund-Raising Round
#6I still feel like there are going to be some major regulatory changes that will eventually hit these types of businesses. What we've generally seen is cities say no, then realize how much value there is but not know what to do about it, then say yes. What we haven't seen as much is the post-yes interaction, where additional taxes and regulations get established. Should be interesting.
That's why they aren't going public yet -- I'm sure they can fetch a much larger valuation if the problems are resolved first.
Re: Airbnb Said to Pursue Valuation Above $10 Billion in New Fund-Raising Round
#7As a comparison point, Expedia has a current market cap of $9.79bn: https://www.google.ca/finance?q=NASDAQ:EXPE
Well, yeah, but Expedia is primarily a search/booking engine, right? They aren't directly creating new, network-effect related opportunities. Much easier to innovate in that area (e.g. Hipmunk) vs. with a marketplace where scale and availability are key.
Re: Airbnb Said to Pursue Valuation Above $10 Billion in New Fund-Raising Round
#8One day, something incredibly bad will happen. When that day comes, AirBnB is going to need a monumental war-chest.
Re: Airbnb Said to Pursue Valuation Above $10 Billion in New Fund-Raising Round
#9What a silly joke[1].
Though they are planning to launch additional services [2] @aaronapple below (above?) is right... regulatory changes are on the way.
Right now they're violating the law, don't collect or pay local taxes unlike real hotels, don't bother with ensuring that local rules and regulations are followed.
This will (and should) change soon. Hiding behind the people who rent out their spaces who are "supposed to pay local taxes" won't hold. Customer databases will need to be released to the IRS or local taxes withheld (which [2] indicates they're working on already).
Once they are forced to play on a level playing field, their rates won't be as competitive and their service not as popular.
[1] http://qz.com/190432/airbnb-doesnt-even-own-a-bed-but-its-ba...
[2] http://www.fastcompany.com/3027107/punk-meet-rock-airbnb-bri...
Re: Airbnb Said to Pursue Valuation Above $10 Billion in New Fund-Raising Round
#10Does anyone have a good estimate on what % of AirBnB rentals are illegal (i.e. not allowed by local zoning laws) and what % are just dodging local hotel taxes?