Airbnb Plans Dual Stock Sales to Postpone IPO

Airbnb is raising money both from investors for a new funding round and from an employee stock sale that will value the home-sharing startup at up to $30 billion, and relieve the need of an initial public offering, according to Wall Street Journal.

The company plans to raise between $500 million and $1 billion from investors. Investors will purchase about $200 million in stock from employees. They will buy common shares rather than preferred shares with grant certain investor protection. More than 500 of about 2500 employees will be eligible to sell their stocks.

These two stock sales will help Airbnb raise enough money to expand its global business and cash out longtime employees, reward and retain its talents.

In early June, Airbnb had secured a $1 billion line of credit led by JP Morgan Chase, Citi Group, and Bank of America.

Airbnb will surpass China’s Didi Chuxing as the third most valuable tech startup in the world, if a prospective valuation of $30 billion succeeds, tripling its valuation in 2014 and making it worth more than Hilton ($22.18 billion), Marriot ($16.79 billion) and Starwood ($12.4 billion).

Along with Airbnb and Uber, Sharing Economy is gaining popularity worldwide. Wikipedia describes it as a form of collaborative consumption encompassing Commercial Peer-to-peer Mutualization Systems, which can be defined as Web-based platforms allowing consumers to engage in monetized exchange through peer-to-peer-based services or temporary access to goods.  A more simplified definition is a socio-economic ecosystem built around the sharing of human and physical resources. Even faced with disruptive regulation challenges, Sharing Economy sees a sign of immense potential.

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