The popular home and apartment rental startup Airbnb raised $555 million in a new round of funding. This confirms recent rumors that the innovative startup is looking to raise a total amount of $850 million in equity funding, which will increase the company’s valuation to about $30 billion.
At such a valuation, Airbnb will become the fourth most valuable venture capital backed tech company in the world, after Uber Technologies Inc. and Didi Chuxing Technology Co. and Chinese company Xiaomi Corp.
Airbnb also has at least six mutual-fund companies invested in them, including Fidelity Investments, T. Rowe Price Group and Morgan Stanley (NYSE: MS). According to the Wall Street Journal, as of June, the six funds had valued their shares at a wide range, from $90.54 to $130.59, according to The Wall Street Journal’s Startup Stock Tracker.
The company has recently expanded its operations to about 34,000 cities world-wide. Not everything went smooth for Airbnb, as it has faced opposition from hotels, governments and neighborhood associations over taxes and lack safety regulations in their operations, which are based on trust. Airbnb is consistently fighting back, as it has sued a number of cities including San Francisco because city officials are trying to block the company for unregistered apartment rentals.