Temasek participates in Airbnb’s $1.5bn round

Airbnb office in San Francisco. Credit: Flickr/Effie Yang

Singapore’s sovereign wealth fund (SWF) Temasek Holdings has participated in home-rental service Airbnb Inc’s latest venture round, in which it raised $1.5 billion from 12 private equity firms. The deal values Airbnb at $25.5 billion, according to the report from the Wall Street Journal.

This new valuation places Airbnb as third in value behind similar venture-capital backed corporations valued at $1 billion or higher, like Chinese smartphone maker Xiaomi Corp. and US-based transport firm Uber. Airbnb’s revenue is expected to exceed $900 million for FY2015 and projected to reach $10 billion by 2020. For comparison, FY2013 saw it earn revenues of $250 million.

This transaction was advised by Morgan Stanley and saw private equity (PE) firms that led the round were General Atlantic, Hillhouse Capital Group of China and global investment firm Tiger Global Management, who bought a third of all the shares allocated in this round of funding. Other participants were venture capital firms Kleiner Perkins Caufield & Byers, GGV Capital, China Broadband Capital and Horizon Ventures.

Morgan Stanley’s involvement in advising this transaction marks a push by banks to advise on large private rounds that are helping companies delay IPOs. The recent expansion its private-stock team is in anticipation of more companies raising capital from many of the same institutions that buy into IPOs.

Mutual fund firms Wellington Management and Baillie Gifford – public “crossover” investment funds that acquire stakes in private companies prior to their initial public offering (IPO) – also participated in this round. Existing investors T. Rowe Price Group Inc. and Fidelity Investments increased their stakes in Airbnb as well.

For perspective, the only other firms to raise a billion dollars or more in their funding rounds in recent years are transport service firm Uber Technologies ($2.8 billion), e-commerce platform Alibaba Group and Facebook. Uber raised $2.8 billion this year through a mix of debt financing from Goldman Sachs and Series E funding from Time Internet and Foundation Capital.

E-commerce platform Alibaba Group raised $1.6 billion in 2011, while Facebook raised $1.5 billion prior prior to is 2011 IPO. Facebook’s funds include $1 billion worth of shares sold directly to wealthy non-US individuals.

Airbnb’s website has more than 1.4 million listings of rooms, apartments, houses and exotic locations for rent. The company makes revenue by taking a 3 percent cut of each booking, along with a 6-12 percent service fee from guests.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.