Airbnb announces $112 million round

Andreessen Horowitz, DST Global, and General Catalyst invest in the eBay for rentals

Financial trends and news by Bambi Francisco Roizen
July 24, 2011
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San Francisco-based Airbnb announced Monday morning that it has secured $112 million in Series B financing from some heavy-hitters, Andreessen Horowitz, DST Global and General Catalyst. Since 2008, the company, which defines itself as a service that helps people discover and book unique spaces around the world, has raised $119.8 million in venture capital.

The announcement puts to rest weeks of rumors around Airbnb's fundraising, which also pegged Airbnb's valuation at $1 billion. The valuation rockets Airbnb, which is growing revenue at 30% to 50% month-over-over, into the elite class of fast-growing startups, with  billion-plus valuations. 

Jeff Jordan, general partner at Andreessen Horowitz likened Airbnb's ability to transform travel and lodging to the way eBay redefined online shopping. "The company is defining a completely new category in e-commerce," he said in prepared remarks.

In a blog post, Jeff provides more detail about his interest:

I first came across Airbnb in March, when Brian presented the business at an investor conference I was attending. For me, it was a true déjà vu experience. I joined eBay in 1999, early in its life, and had the privilege of witnessing and contributing to the development of one of the most iconic e-commerce businesses. Airbnb reminds me more of eBay in its early days than any other business I have ever encountered. Both are:

  • Marketplace models, connecting buyers and sellers
  • Community-driven, populated with passionate users who evangelize the service
  • Providing economic opportunity and empowerment to their sellers/hosts, enabling them to earn meaningful income
  • Platforms upon which their community of users continually expands into new verticals
  • Helping to make inefficient commerce efficient

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