Airbnb just raised $1.5 billion in one of the biggest private-funding rounds ever. The funding values the short-term rental service at an incredible $25.5 billion — more than Marriott or Starwood.
Private-equity firm General Atlantic, Chinese firm Hillhouse Capital Group and investment firm Tiger Global Management, led the funding, buying about a third of the offered shares, according to the Wall Street Journal.
The deal also includes Singapore’s Temasek Holdings, Kleiner Perkins Caufield & Byers, GGV Capital, China Broadband Capital, Horizon Ventures, Wellington Management, Baillie Gifford, T. Rowe Price Group and Fidelity Investment.
Airbnb’s revenue is expected to surpass $900 million this year – a big jump over the $250 million in revenue it reported in 2013. The company, which is facing regulatory challenges in New York, is projected to reach $10 billion in earnings in 2020, according to the Journal. [WSJ]
The new round comes amid an incredibly fertile environment for fundraising. Earlier this week, shared-office provider WeWork announced a new $400 million round that values the company at $10 billion. – Christopher Cameron