BusinessStartUp News

Airbnb raises $555 million in Series F Funding, Surpassing Marriott and Hilton

With Great Valuation Comes Great Responsibility 

In a latest development, global community accommodation startup, Airbnb, has raised $555 million of a $850 million worth Series F funding round. The round was led by Google Capital and Technology Crossover Ventures. According to Forbes, Airbnb, with its current valuation, is quickly surpassing hotel giants like Marriott, Hyatt and Hilton.

The Catch Here

Since its founding in 2008 by Nathan Blecharczyk, Joe Gebbia, and Brian Chesky, Airbnb has raised over $4 billion in capital. But the catch here is that most of it has been in the form of debt financing. In June this year, it had raised a debt funding of $1 billion. Just last November, it had gone for a $1.6 billion equity round. Now with this Series F funding, Airbnb, which had started feeling the pressure to go public, can now heave a sigh of relief.

But Here Are the Repercussions

With such rounds, big companies like Uber and Airbnb have resisted going public till now. There has been only one IPO this year in the U.S. when a company named Twilio went public in June. Many have deemed 2016 as the second worst year for the U.S. IPOs after 2008’s market crash. National Venture Capital Association claims that the average time to go for IPO by a company has doubled in the last 20 years. Also, there has been no IPO from the tech startups until now this year.

If a company doesn’t go public, it doesn’t need to show transparency and release tax return info to its customers and clients. This scenario creates worries against public interest as such big private establishments could easily conceal their activities thus creating a back door to another global meltdown.

What are your thoughts on the need to go public? Share your thoughts in the comments section below.

Subscribe with us to get your dose of interesting news, research & opinions in the startup segment. Fill the form below:

[email-subscribers namefield=”YES” desc=”” group=”Public”]


Get Free Email Updates!

Signup now and receive an email once I publish new content.

I agree to have my personal information transfered to ConvertKit ( more information )

I will never give away, trade or sell your email address. You can unsubscribe at any time.

The Author

Startup-Buzz Team

Startup-Buzz Team

Startup-buzz Team is a collaborative group of entrepreneurs, researchers, writers and experienced professionals. Tied up together to bring the latest Startup Buzz going around the globe.

Previous post

Introduce Yourself Using : Smart Business Cards

Next post

IBM To participate In Internet of Things World Forum 2016.