My best guess for where the $112 million is going is not for cashing out but for rapidly expanding abroad where they're seeing clones rise quickly and gain traction (Wimdu, 9flats). I expect to see a few small acquisitions to build out more inventory in Asia (East Asia + Australia) and probably South America. Congrats to the team on their success over the last year, I recommend AirBnB to my friends all the time.
The do have legitimate competition abroad and they just purchased Accoleo to get a physical presence in Europe.
Additionally, expansion in the U.S. is going to come at a higher cost as they battle for the lucrative vacation rental market with other well-funded companies like VRBO.
Airbnb is really interesting because their relatively agnostic platform can hit a huge market - couches, single rooms, apartments, houses, boats, independent hotels, etc., along with a lot of international markets to play in, whereas competition has generally been more focused on satisfying a specific segment.
I'll be very curious to see how this company's next series of strategic decisions play out, given this very nice Series B.
Comments
My best guess for where the $112 million is going is not for cashing out but for rapidly expanding abroad where they're seeing clones rise quickly and gain traction (Wimdu, 9flats). I expect to see a few small acquisitions to build out more inventory in Asia (East Asia + Australia) and probably South America. Congrats to the team on their success over the last year, I recommend AirBnB to my friends all the time.
The do have legitimate competition abroad and they just purchased Accoleo to get a physical presence in Europe.
Additionally, expansion in the U.S. is going to come at a higher cost as they battle for the lucrative vacation rental market with other well-funded companies like VRBO.
Airbnb is really interesting because their relatively agnostic platform can hit a huge market - couches, single rooms, apartments, houses, boats, independent hotels, etc., along with a lot of international markets to play in, whereas competition has generally been more focused on satisfying a specific segment.
I'll be very curious to see how this company's next series of strategic decisions play out, given this very nice Series B.