Although Airbnb is notoriously coy about its financials, the holiday rental giant has raised $3.4 billion from investors and was most recently valued at $30 billion.
The San Francisco-based company, which has been been solely venture-funded thus far, is earning its stripes as a real estate unicorn. In December 2015, it raised $1.5 billion at a valuation of $25.5 billion, and its last round of funding in August raised $850 million at a valuation of $30 billion.
Investors include Andreessen Horowitz, Ashton Kutcher, Baillie Gifford, China Broadband Capital, CrunchFund, Dragoneer Investment Group, DST Global, Elad Gil, Fidelity Investments, FirstMark Capital, Founders Fund, General Atlantic, Anton Levy, General Catalyst Partners, Joel Cutler, GGV Capital, Glenn Solomon, and Greylock Partners.
Airbnb also raised $1 billion in debt from JPMorgan Chase in June this year.
Airbnb revenue streams involve charging property owners a 3 percent fee on the property rented and a surcharge of between 6 percent and 12 percent from the guest who rents the property.
The company is shy about disclosing its performance, but it’s estimated to have made $250 million in 2013 and nearly $900 million in 2015. Yet despite rising revenues, Airbnb is yet to make profits, with reports suggesting it ended 2015 with $150 million in operating losses. However, it’s expected the company will become profitable in the next year.
Globally, the holiday rental market has boomed, with a recent Research and Markets report estimating the industry to be worth $100 billion, with this figure ballooning to $170 billion by 2019.
The US holds the biggest slice of the pie with 25 percent of the market and Airbnb - which operates in more than 34,000 cities across 191 countries - has capitalised on this industry growth.