According to a reliable source, the company is now worth north of $1 billion. It is a huge jump from the $7.2 million Series A it increased in November 2010. The company as well acknowledged a “significant investment” from Ashton Kutcher only a few months ago.
Brian Chesky, co-founder and CEO said, “Today is a watershed moment – both for Airbnb as a company and for our community — that will enable us to touch new markets and expand our vision to make the world’s most interesting and inspiring places accessible to our users.”
Andreessen Horowitz, whose portfolio companies currently include Box.net, Foursquare, Facebook, Groupon, Instagram, Twitter, Zynga and Skype, guided the round with a $60 million investment. Jeff Bezos, Amazon.com founder is as well reportedly invested also.
The money is obviously meant to fuel growth rather than cash out its existing investors, something that Facebook, Groupon and others have done with their massive funding rounds. Airbnb encounters international rivalry from companies similar to Wimdu which it openly calls “impostors.” The money can be utilized for international acquirements, a tactic Groupon has generously used.
Andreessen Horowitz partner Jeff Jordan said about the acquisition, “And while [Airbnb] has accomplished a ton in just a couple of years, we believe that they’re just scratching the surface of their potential. They have opportunities to go much deeper in their current categories, broaden into new categories of spaces, and build out their global footprint. They are truly pioneering a new marketplace, where access to spaces is more valuable than ownership.”