The company is already available in 83 countries and plans to double its transactions this yearRead more...
Andreessen Horowitz, DST Global, and General Catalyst invest in the eBay for rentals
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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Airbnb.com is the “Ebay of space.” The online marketplace allows anyone from private residents to commercial properties to rent out their extra space. The reputation-based site allows for user reviews, verification, and online transactions, for which Airbnb takes a commission. As of June, 2009, the San Francisco-based company has listings in over 1062 cities in 76 countries.