Airbnb was founded by Joe Gebbia and Brian Chesky in 2008 with the first booking at their own apartment to make money for rent. Today there are over 6 million Airbnb listings in over 81,000 cities worldwide. Over two million people stay in an Airbnb each night. Airbnb (alongside Uber in 2009) established something called the sharing economy marketplace. The two most expensive items that people own are homes and automobiles. In many cases the ability to own these assets is through debt (mortgages, car loans, or leases). Despite the high price tag, these assets are materially underutilized. Extra rooms and second homes are vacant most of the year, and the average car is used a mere 56 minutes a day. By creating this sharing economy Airbnb has unlocked earning opportunities from the underutilized assets. Therefore, just like Joe and Brian did to pay for their rent, others are able to pay their debts by renting out their expensive underused assets.
Funding for Airbnb has been explosive. They gained Unicorn status in 2011 with their Series B round investment of $117M, valuing the company at $1,313,963,533 according to the Prime Unicorn Index. 2011 played a critical role for the company, not only did they gain unicorn status, they expanded internationally by opening an office in Germany, and were ridiculed for renters trashing a house. However, the funding and valuations did not stop there, a year later they raised $200M in Series C, and $475M in Series D in 2014. And then, the company secured one of the biggest private placements ever made (at the time), a $1.5 Billion Series E round from General Atlantic, Hillhouse Capital Group of China, Tiger Global Management, Kleiner Perkins Caufield and Byers, GGV Capital and others. Their last investment, Series F rounded out another $1 Billion investment at a post-money valuation of $29,252,091,441.
The price per share stated on their Certificates of Incorporation and Employee Plan Exemption Notices are indicative of a potential IPO. If you were to compare the internal (409-A) price per share, against the Preferred (or external price per share), you can see that the two have moved together with a consistent discount, until the most recent filing which listed the Common PPS at $105.40 (Series F is at $105.00). Side note, Sequoia Capital has been in the game since their Seed round, so it will be very interesting to see how well they will fare if an IPO does happen.
The Prime Unicorn Index currently lists Airbnb as a component. Here’s how they are currently tracking against the index:
The Prime Unicorn Index provides a unique opportunity for institutional investors to access a fair representation of the private markets where they can make an investment on the future of their portfolios, whether they want to go long or short.
Additionally, the Index provides up-to-date empirical data used to track today’s private capital markets and offer ways to offset exposure in regard to direct private market investments by taking advantage of the trading opportunities presented by Prime Unicorn Index.
Please email us here for information on trading opportunities with the Index.
Bloomberg Ticker: PUNICORN
Reuters Ticker: .PUNICORN