At some point this morning Airbnb will finally be a public company. After a rocky year, his time could not be more perfect. Airbnb was in the final stages of its IPO preparations in early 2020. Then, as we all know, COVID-19 happened.
In an instant, COVID-19 scrapped the entire business model of AirBnB. Reservation dropped 80%. The company was originally forced to discontinue its services when evaluating alternatives. The company cut marketing costs by 54%, eventually 22% of all costs. He raised $ 3.5 billion in emergency financing for hurricane season. Surprisingly, Airbnb pivoted to a degree that almost could not fathom. Today the company has emerged from the epidemic as a preferred accommodation option in the form of hotels.
Helping their IPO prospects is Doordish. DoorDash went public yesterday and absolutely skyrocketed. DoorDash was expecting a valuation of $ 20-30 billion for the IPO, currently sitting at a valuation of $ 56 billion and came close to $ 70 billion at yesterday’s peak. Last night Airbnb’s shares were valued at $ 68. As of this writing (the IPO has not yet taken place), the market is expecting AirBnB shares to be priced at around $ 150 as long as the average investor can make a purchase. At $ 68 per share, the company would be worth $ 47 billion. At $ 150, the company would cost less than $ 100 billion. At that stage, Airbnb will instantly be worth more than Marriott and Hilton COMBINED.
Over the years Airbnb raised less than $ 6 billion in private investments.
- His first major investment was $ 20,000 in seed money raised from Y Combinator in January 2009. The company was valued at $ 2.5 million in this round.
- Less than a year later, the company raised $ 7.2 million from a syndicate of investors (including Ashton Kutcher) at a valuation of $ 70 million.
- Seven months later the company raised $ 115 million from a new syndicate (Jeff Bezos in this group) at a valuation of $ 1.3 billion.
- As of April 2014, the company’s personal valuation rose above $ 10 billion.
- The company was valued at over $ 25 billion in July 2015.
- When the company raised $ 1 billion in September 2016, it valued the private market at $ 31 billion.
- In April 2020, Airbnb raised $ 1 billion (as opposed to equity investment) in debt financing, which was essentially $ 30 per share, a market cap of $ 18 billion, in the worst part of COVID-19.
- In early December, just weeks before the company’s expected IPO, AirBnB was valued at $ 47 billion, or $ 60-70 per share.
- On the morning of the IPO, December 10, 2020, the company had a market cap of $ 100 billion, or $ 150 to $ 160 per share.
Let’s take a look at who will be rich for real after today’s IPO …
Investor Sequoia Capital: $ 12 billion
Class A shares: 691,612
Class B shares: 81,277,532
Total Shares: 81,969,144
Sequoia Capital led the seed round for Airbnb in 2009. The company invested $ 585,000 in the then brand-new startup. Sequia has participated in every funding round and is the largest shareholder of AirBnB.
Back in 2009, Alfred Lin, a partner at Sequoia Capital and former COO of Zappos, had doubts about AirBnB. He thought that people would open their houses to strangers was crazy. It was founder Brian Chesky who won him over. Chesky was able to work out the trajectory of the business instead of focusing only on the overall vision. Chesky also understood how difficult it would be to make AirBnB a widely accepted thing, which Lin praised.
Co-founder / CEO Brian Chesky: $ 11 billion
Class B shares: 76,938,518
Brian Chesky is not just one of the three founders of Airbnb, he was the company’s first host. The idea was born in 2007 when best friends Brian Chesky and Joe Gabia realized that all of San Francisco’s hotels were sold during the much larger Industrial Designers Society of America conference. They came up with the idea of converting their apartment into a bed and breakfast for those attending the conference. They did not have extra beds or bedrooms, but they had three air mattresses. He provoked them and called himself Airbed and Breakfast. The three stayed with Chesky and Gabia and took $ 80 a night from them.
Chesky is the CEO of Airbnb and over the past 12 years, he has run the company through crazy growth, lawsuits, two recessions, an epidemic, and now, its IPO.
Co-founder Joe Gabia: $ 10 billion
Class B shares: 70,093,067
In the early days of Airbnb, Joe Gebia went to door-to-door hosts to take pictures of their homes for AirBnB’s website and app. Today he is the Chief Product Officer of AirBnB and heads the company’s in-house design studio. He also develops new products and services for the country.
The IPO will substantially increase his wealth. However, Gibia and her other two co-founders are all members of the Giving Pledge and have committed to donating at least half of their money to philanthropic works over their lifetimes.
Co-founder Nathan Blecharsk: $ 10 billion
Class B shares: 70,093,135
Nathan Blecharski joined AirBNB when its only two employees were Chesky and Gabia and their only hosts were Chesky and Gabia and their three air mattresses. While both Chesky and Gabia are designers, Bletchczy is an engineer from Harvard University. Blecharczyk developed the company’s data science, engineering and performance marketing divisions. Today he is leading the global initiative for AirBNB as Chief Strategy Officer.
Nathan Blecharski came to AirBNB at a time when only Chesky and Gabia were in the company.
Investor Founders Fund: $ 4 billion
Class B shares: 26,556,110
The Founders Fund invested in AirBnB in 2013. He led the Series C round in 2013 and bought for $ 5.90 per share. The company was particularly influenced by Brian Chesky and the Sixth Indri seemed to have an idea of what AirBnB customers wanted from rented homes.
Investor DST Global: $ 2 billion
Class A shares: 3,052,922
Class B shares: 11,093,112
Total Shares: 14,147,034
DST Global is the firm of Russian billionaire Yuri Milner. He is a former banker. He founded DST Global in 2009. In 2011, DST invested in the Series B round of AirBnB. This was the period that officially accorded Airbnb unilateral status.
Investor Silver Lake: $ 700 million
Class A shares: 5,026,804
Investor Sixth Street Partners: $ 540 million
Class A shares: 3,967,398
We have grouped these two private equity firms together since they invested at the same time – in April when AirBnB was losing money daily as a result of the global lockdown due to coronovirus. This investment was a lifeline for not only AirBnB, but the travel industry in general.
Board Member Brenda Johnson: $ 360 million
Class B shares: 2,531,978
Belinda Johnson joined Airbnb in 2011 as Chief Legal Advisor. In early 2018 he was promoted to COO. He resigned from that role in 2019. His last day was in March 2020, but he was made a member of the board at that time. She was at Yahoo before Airbnb. He is also on the board of directors of PayPal. He sold 466,824 shares of Airbnb in May for $ 27.4 million. When she left the job, some of her shares were converted into unsold stocks and options. He got new stock, he said, when he was made a member of the board. When all is said and done, including the May sale for $ 27.4 million, Johnson will make more than $ 115 million from his Airbnb shares.
VP of luxury Jonathan Palin: $ 320 million
Class A shares: 2,279,756
Jonathan Paulin sold his startup which specialized in luxury holidays for Airbnb in 2017 for $ 300 million. He joined the company to establish a luxury division.
Board Member Kenneth Chenault: $ 220 million
Class B shares: 1,526,160 (option he can exercise before November 29)
Kenneth Chenault was the first board member of AirBnB. He is the former CEO of American Express. He has been with AirBNB since 2018. He is also the Chairman and Managing Director of the venture capital firm General Catalyst.
Shareholder Accel: $ 120 million
Class A shares: 919,308
Airbnb bought a company of Accel, Hotel Tonight in 2019 for $ 400 million. Excel had a major stake in Hotel Tonight after leading the 2011 seed round. Accel converted its shares of Hotel Tonight into a stake in Airbnb.
Former President of Home Greg Greeley: $ 40 million
Class B shares: 277,776 (Option he can exercise before 29 November)
Greg Grech came to AirBNB in 2018 to run his air rental division. Previously, he was the head of Amazon Prime. Greeley left Airbnb in early 2020 during its executive shakeup. He is a consultant at Tapas Capital, an early-stage venture capital company.
CTO Ari Balog: $ 20 million
Class B shares: 152,496 (option he can exercise before November 29)
Aristotle “Ari” Balog joined Airbnb from Google in 2018. He was the VP of engineering on the infrastructure behind the search on Google. Prior to this, he has led an 8,000-member product and engineering team at Yahoo.
CFO Dave Stephenson: $ 6 million
Class B shares: 46,666 (option he can exercise before November 29)
Hiring a CFO is important for a startup, which is planning its initial public offering. Dave Stephenson joined Airbnb in 2018. He previously worked on Amazon for 17 years.
Global Head of Hosting Catherine Powell: $ 6 Million
Class B shares: 37,916 (option he can exercise before November 29)
This year Catherine Powell from Disney joined AirBnB. He ran the theme park division for the US and France. At Airbnb, she heads the global team that combines rental and Airbnb experience groups.
Board Member Angela Ehrends: $ 2 million
Class B shares: 11,848 (option he can exercise before November 29)
In 2019, former Apple executive Angela Ahrends joined Airbnb’s board of directors. At Apple, she was the senior VP of retail. She was also the highest-grossing executive of a tech giant.