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Airbnb to Raise $100 Million at $2 Billion Valuation?

The lodging marketplace is reportedly starting a massive funding round at an even larger valuation.

AirBnB

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Airbnb, the home sharing marketplace, is apparently looking to raise $100 million in its third round of funding at a valuation of between $2 billion and $3 billion, according to TechCrunch.

Founded in 2008 by Brian Chesky, Joe Gebbia, and Nathan Blecharczyk, Airbnb is an online marketplace for people wishing to rent out their extra rooms and travelers looking to book them. After leaving Y Combinator, the company raised a $7.2 million series A funding round from Sequoia Captial and Greylock partners. In July 2011, the company raised more than $112 million in a round led by Andreessen Horowitz.

Airbnb did not disclose its revenue, but the company collects a 6-12% service fee for every reservation booked through the site, and an additional 3% for processing the payment. The company's growth accelerated in 2012, with the total number of nights booked doubling from 5 million in late January to 10 million this June.

In his new book The Launching Pad: Inside Y Combinator, author Randal Stross says that Airbnb is worth $1.3 billion. (He also says cloud-based document storage company Dropbox is worth $5 billion.)

Earlier in September, Paul Graham, founder of Y Combinator, wrote a blog post saying that the total value of companies the tech incubator has funded is around $10 billion, with 75% of that coming from Airbnb and Dropbox

The company declined to comment on the report and reprsentatives from Airbnb investors Greylock Partners and Sequoia Capital declined to comment as well.

Last updated: Sep 27, 2012

JOHN MCDERMOTT | Staff Writer

John McDermott is a business and culture reporter whose work has appeared in the Chicago Tribune and Playboy and on AOL.com. He recently moved from Chicago to Brooklyn, New York, to work for Inc.com.




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