Airbnb is doing something big and Google wants in. Airbnb managed to raise $555 million of the expected $850 million funding round with Alphabet Inc. leading the deal. The company values $30 billion and with the funding round not yet closed; Airbnb hopes to cross it’s expected $850 million markers with another significant investment.
The San Francisco-based company has filed SEC ‘Form D’ document with specific terms to raise $555 million. Airbnb had raised another $1 billion credit facility in the summer this year, which followed by this new investment, implies that it has managed to raise a total of $4 billion outside funding.
The deal was led by Technology Crossover Venture (TVC) and Google Capital, which is the investment arm of Alphabet Inc. and runs under David Lawee. The list of investors at Airbnb includes Series E, which invested $1.5 million in the stocks of Airbnb the previous year. The current evaluation of Airbnb is $30 billion, making it the second biggest startup in the US after Uber.
The total infusion of $850 does not include the subsequent transactions which allow early shareholders of the company to garner partial liquidity. As a part of this deal between Airbnb and Google, some employees were able to sell their shares too. This is being seen as a step for employee retention because if the home rental company stays private, the lesser chance that employees will turn their stocks into available cash.
However, there are several regulatory challenges that the company needs to face, and the legal battle with the city of San Francisco does not make it any easier for them. The home rental company is also facing some pressure on its European front with the Barcelona City Council demanding that illegal rentals shall be reported by the residents. Although there is a lot of cash inflow for the company, the regulatory norms won’t let the path be smooth for Airbnb.