Airbnb overcomes horror stories on way to $10B valuation

  • Posted by a hidden member.
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    Mar 20, 2014 11:00 PM GMT
    Hmmm interestingly the co-founder Brian Chesky is also a body builder...

    Airbnb overcomes horror stories on way to $10B valuation
    http://www.bizjournals.com/seattle/blog/techflash/2014/03/airbnb-overcomes-horror-stories-on-way-to-10b.html

    In the midst of another round of stories about Airbnb rentals gone awry, the company's valuation is reportedly hitting a remarkable $10 billion.

    The Wall Street Journal's sources said that private-equity firm TPG is likely to lead a new funding round that could total between $400 million and $500 million.

    That would put the San Francisco home-sharing service on a par with the most highly valued venture-backed companies yet to exit and would appear to take it out of the running for an IPO this year. It would join at that nosebleed level with another San Francisco company, Dropbox, which recently raised funds at a $10 billion valuation, and Palo Alto-based Palantir, which is valued at about $8 billion.

    Before this, the startup led by CEO Brian Chesky had raised about $326 million since it was founded in 2007. Its previous backers include Andreessen Horowitz, General Catalyst Partners, Sequoia Capital, Greylock Partners and Digital Sky Technologies.
  • coolarmydude

    Posts: 9190

    Mar 20, 2014 11:27 PM GMT
    http://dearairbnb.tumblr.com/

    This was last weekend. I think the valuation is disguised damage control.

    A valuation means nothing if investors don't invest.
  • coolarmydude

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    Mar 20, 2014 11:31 PM GMT
    "Landlords are pissed off that tenants are profiting off their properties," Delene Wolf, executive director of the San Francisco Rent Board, told the Chronicle. "It makes them crazy: They're rent controlled, and the tenant is making more off their property than they can make."

    Well, if there are restrictions against sub-letting, landlords have grounds for eviction.
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    Mar 20, 2014 11:37 PM GMT
    coolarmydude saidhttp://dearairbnb.tumblr.com/

    This was last weekend. I think the valuation is disguised damage control.

    A valuation means nothing if investors don't invest.


    I'd expect that they will likely get the valuation (the article pointing to vc's doing the investing in this round). It's not surprising that they have a lot of opposition though given their business model. People don't like change... especially those industries and asset owners who have to give up power as in the case of local city governments and hoteliers.
  • coolarmydude

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    Mar 22, 2014 2:03 AM GMT
    Interestingly, Airbnb was talked about on MSNBC's Morning Joe this morning.

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    Mar 22, 2014 10:48 AM GMT
    Here's the thing..Govt are looking for tax money and Airbnb flies below radar. Hoteliers are seeking to equal the field as best they can and this is one issue they are trumpeting. And the Airbnb hosts dont have much of a way to organize a lobby in opposition, particularly if a number of them don't want the condo assoc/landlords knowing they are renting.
  • coolarmydude

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    Mar 22, 2014 2:35 PM GMT
    NJDewd said And the Airbnb hosts dont have much of a way to organize a lobby in opposition, particularly if a number of them don't want the condo assoc/landlords knowing they are renting.


    That's because it's likely an illegal sub-let. Airbnb is destined to fail because of this.

    Also consider the decrease in homeownership over the last few years and the increase in rental demand. Rental agreements usually stipulate no subletting or that it has to be cleared by the landlord/front office before proceeding.
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    Mar 22, 2014 2:38 PM GMT
    coolarmydude said
    NJDewd said And the Airbnb hosts dont have much of a way to organize a lobby in opposition, particularly if a number of them don't want the condo assoc/landlords knowing they are renting.


    That's because it's likely an illegal sub-let. Airbnb is destined to fail because of this.


    Except is not always a clause and it hasn't been a common one. It's also only more an issue for renters. There are now stories of landlords kicking out tenants in favor of AirBnb because they can make a lot more money.
  • coolarmydude

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    Mar 23, 2014 5:53 PM GMT
    riddler78 said
    coolarmydude said
    NJDewd said And the Airbnb hosts dont have much of a way to organize a lobby in opposition, particularly if a number of them don't want the condo assoc/landlords knowing they are renting.


    That's because it's likely an illegal sub-let. Airbnb is destined to fail because of this.


    Except is not always a clause and it hasn't been a common one. It's also only more an issue for renters. There are now stories of landlords kicking out tenants in favor of AirBnb because they can make a lot more money.


    Well that's a different story. They are not obliged to renew a lease.
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    Mar 23, 2014 6:07 PM GMT
    They are building a new customer service center in Portland. Yet ironically, there is no place in the state where their service is legal. It is a violation of both hotel tax laws and land-use laws. If the code enforcement guys have a slow day, all they have to do is look up violators on the AirB&B website. icon_rolleyes.gif
  • coolarmydude

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    Mar 23, 2014 6:11 PM GMT
    mindgarden saidThey are building a new customer service center in Portland. Yet ironically, there is no place in the state where their service is legal. It is a violation of both hotel tax laws and land-use laws. If the code enforcement guys have a slow day, all they have to do is look up violators on the AirB&B website. icon_rolleyes.gif


    Yeah, there is no way this company is valued at $10B. It's a total damage control propaganda piece.
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    Mar 23, 2014 6:26 PM GMT
    coolarmydude said
    mindgarden saidThey are building a new customer service center in Portland. Yet ironically, there is no place in the state where their service is legal. It is a violation of both hotel tax laws and land-use laws. If the code enforcement guys have a slow day, all they have to do is look up violators on the AirB&B website. icon_rolleyes.gif


    Yeah, there is no way this company is valued at $10B. It's a total damage control propaganda piece.


    Basically if I was a hotelier I would be up in arms with my local and state officials that these folks skip on paying oftentimes in resort and convention cities a 10-18% "bed" tax.
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    Mar 23, 2014 7:54 PM GMT
    With $G's in hand, the web site could obviously deal with collecting the taxes due. There's no way they could overcome zoning laws though. Or lease and mortgage terms.

    I notice that every time I look at the site, one or two of my neighbors have something listed. It's never the same ones twice though...
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    Mar 24, 2014 12:47 AM GMT
    LOL. All these "sharing" services that skirt local laws are destined to fail or get a smackdown on new laws.. AirBnB, Uber, Lyft, etc. They're eating into tax revenues. I don't think any city with any sort of tourism will sit by and let this continue.

    Besides, $10 billion is fuckin insane. ABB (and the other) produce nothing of tangible value. They're a middle man that just connects two parties. That $10B was just pulled out of someone's ass. icon_lol.gif
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    Mar 24, 2014 12:49 AM GMT
    That figure was developed by essentially taking the investment dollars proposed and then the percentage to be given to the investor(s). Probably still to be negotiated completely but probably in the neighborhood - not saying it is a good investment just that is how the valuation was derived.
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    Mar 24, 2014 6:14 AM GMT
    I was looking into air b&b in San Fran. I didn't end up finding a place since I was already there and looking for the same day...but I think the whole concept is pretty neat. A friend of mine rented a full apartment that was very nice off Divisadero.
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    Mar 24, 2014 11:52 AM GMT
    coolarmydude said
    riddler78 said
    coolarmydude said
    NJDewd said And the Airbnb hosts dont have much of a way to organize a lobby in opposition, particularly if a number of them don't want the condo assoc/landlords knowing they are renting.


    That's because it's likely an illegal sub-let. Airbnb is destined to fail because of this.


    Except is not always a clause and it hasn't been a common one. It's also only more an issue for renters. There are now stories of landlords kicking out tenants in favor of AirBnb because they can make a lot more money.


    Well that's a different story. They are not obliged to renew a lease.


    Apparently in many states/cities they are... like San Fran...
  • coolarmydude

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    Apr 23, 2014 12:30 AM GMT
    http://abcnews.go.com/US/wireStory/york-ag-seeks-airbnbs-nyc-sublet-information-23425192

    I turned on the t.v. and it was just in time for an ABC World News report on how the hotel industry is "going to war" with Airbnb. I haven't found the video online yet, perhaps too soon since the broadcast. But they said that the hotel chains, especially in NYC, are increasing their prices around 17%, the highest in 4 years, as a way to compete against Airbnb, but that didn't make sense! Airbnb is cheaper than the hotels because they don't offer amenities, just a place to rent in a great location.

    More to come when that video uploads. I either heard it wrong or it just doesn't make sense.
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    Apr 23, 2014 12:38 AM GMT
    http://dealbook.nytimes.com/2014/04/21/morning-agenda-airbnbs-10-billion-valuation/?_php=true&_type=blogs&_r=0

    Airbnb is said to have closed a $475 million round of financing from a group led by TPG Growth that values the home-sharing company at about $10 billion, Michael J. de la Merced writes in DealBook. At the value assigned by the investment, Airbnb — a website and app where homeowners and apartment dwellers rent their homes, spare rooms or couches to travelers — would be worth more than some established hotel chains like Wyndham Worldwide or Hyatt.

    Airbnb is also set to meet New York State’s attorney general, Eric T. Schneiderman, in court this week related to a subpoena filed last fall “to identify bad actors and illegal activity on the platform,” according to TechCrunch. The state is looking to crack down on hosts operating multiple listings.
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    Apr 23, 2014 1:06 AM GMT
    coolarmydude said"Landlords are pissed off that tenants are profiting off their properties," Delene Wolf, executive director of the San Francisco Rent Board, told the Chronicle. "It makes them crazy: They're rent controlled, and the tenant is making more off their property than they can make."

    Well, if there are restrictions against sub-letting, landlords have grounds for eviction.


    The rules in SF are so fucked. I would never be a landlord in SF.

    If I ever found that a tenant used Airbnb...they would so evicted and sued for damages and loss of income.

    Also, I would never use Airbnb to rent a place when traveling. Airbnb not safe for either landlord or people who sign up to use it.

  • tj85016

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    Apr 23, 2014 1:10 AM GMT
    if it's pumped on MSNBC (aka CNBC) it will be a great short one day
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    Apr 23, 2014 5:15 PM GMT
    My bf and I use airBNB extensively in our recent travel (mostly to US). We have pretty positive experiences.