Airbnb Mulls Cash Infusion From New Investors, Explained
Photo Credit: Airbnb co-founders (from left) Joe Gebbia, Nathan Blecharczyk, and Brian Chesky in 2017. The homesharing giant seeks new funding to cope with the coronavirus pandemic. Airbnb
Skift Take
Many of Airbnb's previous funding rounds were oversubscribed. But if Airbnb indeed taps new venture capital funding, it won't have trouble finding benefactors. Still, the company's valuation will be considerably lower than the prior $31 billion.
Airbnb had $2 billion cash on hand at the end of 2019, but with losses mounting, and a direct listing or an initial public offering impossible as coronavirus-burdened stock markets flop, the short-term rental giant may try to raise funding privately from new investors.
[Update: A source close to Airbnb said some 20 parties, including individuals, venture firms, and other entities, contacted Airbnb in the past week expressing interest in investing in the still-privately held company. Tentative offers ranged from $100 million to $1 billion, according to the source, who didn't know whether the 20 included any existing Airbnb investors.
When asked about this investor interest, Airbnb declined to comment.]
That's the gist of a Wall Street Journal story Friday headlined Airbnb Racks Up Hundreds of Millions in Losses Due to Coronavirus.
The following are the main revelations in the story and our Skift Take
