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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.