Startups

Airbnb Has Closed Its $500M Round Of Funding At A $10B Valuation, Led By TPG

Comment

TechCrunch has learned that Airbnb, the fast-growing site that lets people become hoteliers by renting out sofas, rooms or entire private homes, has now closed its latest round of funding: $500 million, led by private equity firm TPG, at a $10 billion valuation, according to our sources. This brings the total raised by Airbnb to $826 million.

Negotiations around the funding were previously reported by the Wall Street Journal, which reported that TPG and Dragoneer Investment Group were leading the round, and that mutual funds including T. Rowe Price were also involved. Update: WSJ is reporting that it’s a $450 million round, same valuation, with Dragoneer, Sequoia and T. Rowe Price also named as investors.

We understand from sources that Allen & Co. — known for its recent work advising Facebook on its $19 billion purchase of WhatsApp, working on Twitter’s IPO, and helping Dropbox with its latest, $350 million round — has been helping to orchestrate this round for Airbnb.

The deal is an interesting one for TPG. Its TPG Growth division is a key investor in Uber, another startup innovating at “the edge of the forest” (Yammer’s David Sacks’ description of the group of companies applying tech to disrupt non-technical fields). Through TPG Capital, it has extensive holdings in the property and travel markets already, specifically through its ownership of RentPath; and part-ownership of Sabre/Travelocity.

It’s not clear how and if any of TPG’s holdings will come into play in relation to Airbnb, but it’s tempting to think of how they could.

Airbnb’s previous, $326 million of backing came from a fairly large pool of investors: Y-Combinator (where it was incubated in 2009), Sequoia Capital, Youniversity Ventures, Greylock Partners, SV Angel, Keith Rabois, Elad Gil, Jeremy Stoppelman, Andreessen Horowitz, General Catalyst Partners, Jeff Bezos, Digital Sky Technologies, CrunchFund (run by Michael Arrington, who founded TechCrunch), Ashton Kutcher, Eniac Ventures and Founders Fund.

We understand that some past investors are also part of this latest round.

Since opening for business five years ago, Airbnb has taken the travel accommodation industry by storm. Effectively, it created and now dominates a new market segment — private homeowners use its cloud-based platform to list and collect payments for their rooms and houses, with mobile apps and social integrations all greasing the wheels of the Airbnb machine.

Airbnb now has over 600,000 listings across nearly 200 countries. The WSJ reported earlier this month that revenues in 2013 were about $250 million, more than double what it made the year before. Like Uber and other companies that have disrupted older and more established industries, that rapid growth has drawn a lot of heat from incumbent competitors — in Airbnb’s case from the hotel industry — which have been played out on legal and regulatory fronts in different cities.

Airbnb is not always fast to reveal what it is doing on the fundraising front. A $250 million round led by Peter Thiel’s Founders Fund, which Airbnb raised in 2012, was only disclosed publicly in 2013 (at TC Disrupt in Berlin, as it happened). In other words, it isn’t clear when the company when the company will announce this round, either.

What it will mean is that Airbnb, now at a $10 billion valuation, may be less quick to run for the public markets. That’s perhaps a sign of the times, with many pointing to an impending “closing” of the IPO window for tech companies, evidenced by a trend among listing companies pricing their offerings below their expected ranges.

Update: The WSJ and Re/Code are reporting the total raise to be $450 million instead of the $500 million we’ve heard. While we’re not sure of the exact reason for the reporting discrepancy, the last time we broke funding news like this, with an overage in raise amount, was Snapchat. In Snapchat’s case, the missing $20 million in other outlets’ coverage was due to a secondary sale of stock by the founders, which we had included in our total.

Image via Frontback.

 

More TechCrunch

Tags

The U.K.’s self-proclaimed “world-leading” regulations for self-driving cars are now official, after the Automated Vehicles (AV) Act received royal assent — the final rubber stamp any legislation must go through…

UK’s autonomous vehicle legislation becomes law, paving the way for first driverless cars by 2026

ChatGPT, OpenAI’s text-generating AI chatbot, has taken the world by storm. What started as a tool to hyper-charge productivity through writing essays and code with short text prompts has evolved…

ChatGPT: Everything you need to know about the AI-powered chatbot

SoLo Funds CEO Travis Holoway: “Regulators seem driven by press releases when they should be motivated by true consumer protection and empowering equitable solutions.”

Fintech lender Solo Funds is being sued again by the government over its lending practices

Hard tech startups generate a lot of buzz, but there’s a growing cohort of companies building digital tools squarely focused on making hard tech development faster, more efficient, and —…

Rollup wants to be the hardware engineer’s workhorse

TechCrunch Disrupt 2024 is not just about groundbreaking innovations, insightful panels, and visionary speakers — it’s also about listening to YOU, the audience, and what you feel is top of…

Disrupt Audience Choice vote closes Friday

Google says the new SDK would help Google expand on its core mission of connecting the right audience to the right content at the right time.

Google is launching a new Android feature to drive users back into their installed apps

Jolla has taken the official wraps off the first version of its personal server-based AI assistant in the making. The reborn startup is building a privacy-focused AI device — aka…

Jolla debuts privacy-focused AI hardware

OpenAI is removing one of the voices used by ChatGPT after users found that it sounded similar to Scarlett Johansson, the company announced on Monday. The voice, called Sky, is…

OpenAI to remove ChatGPT’s Scarlett Johansson-like voice

The ChatGPT mobile app’s net revenue first jumped 22% on the day of the GPT-4o launch and continued to grow in the following days.

ChatGPT’s mobile app revenue saw its biggest spike yet following GPT-4o launch

Dating app maker Bumble has acquired Geneva, an online platform built around forming real-world groups and clubs. The company said that the deal is designed to help it expand its…

Bumble buys community building app Geneva to expand further into friendships

CyberArk — one of the army of larger security companies founded out of Israel — is acquiring Venafi, a specialist in machine identity, for $1.54 billion. 

CyberArk snaps up Venafi for $1.54B to ramp up in machine-to-machine security

Founder-market fit is one of the most crucial factors in a startup’s success, and operators (someone involved in the day-to-day operations of a startup) turned founders have an almost unfair advantage…

OpenseedVC, which backs operators in Africa and Europe starting their companies, reaches first close of $10M fund

A Singapore High Court has effectively approved Pine Labs’ request to shift its operations to India.

Pine Labs gets Singapore court approval to shift base to India

The AI Safety Institute, a U.K. body that aims to assess and address risks in AI platforms, has said it will open a second location in San Francisco. 

UK opens office in San Francisco to tackle AI risk

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

1 day ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets