Google Ventures has invested in Austin, Texas based HomeAway, a vacation home rental service, at a $1.4 billion valuation, we’ve heard from a source. The New York Times first broke the story, but doesn’t have details on valuation or amount invested.
Our source says Google Ventures invested somewhere around $25 million in the company.
Google Ventures bought stock directly from existing shareholders and the money isn’t being injected into HomeAway. The valuation was set in the last round of financing, a massive $250 million raise in 2008.
The company has been growing rapidly since launching in 2005, partly through acquisitions. We’ve estimated revenue to be in the $200 million range, with $70 million or so in profit.
Around half a billion dollars has been invested in HomeAway to date.
HomeAway, Inc., based in Austin, Texas, represents more than 540,000 paid vacation rental home listings throughout 120 countries, and connects homeowners and property managers with the millions of travelers seeking alternatives to hotels. HomeAway offers an extensive selection of vacation homes that provide travelers with memorable experiences and benefits, including more room to relax and added privacy, for less than the cost of traditional accommodations. The company also makes it easy for vacation rental...
Google Ventures is the financially motivated venture capital arm of Google Inc., founded in 2009. Google Ventures invests in startups in industries including consumer Internet, software, hardware, clean-tech, bio-tech, health care and others. They aim to invest about $100 million a year, with deal sizes ranging from seed to late-stage investments of tens of millions of dollars, depending on the stage of the opportunity and the company’s need for capital. Google Ventures currently invests in the U.S. and has offices in...