Airbnb Raises $100 Million in Additional Funding

November 23, 2015

Airbnb Raises $100 Million in Additional FundingAirbnb, a startup company that allows users to list and find available spaces for short term rentals for trips and vacations, has announced that it will be raising another $100 million in funding. The company, one of Silicon Valley’s largest startups, raised an impressive $1.5 billion only a few short months ago. The company is projected to reach profitability sometime next year.

The startup, valued at $25.5 billion after its large fundraising efforts earlier this year, has had major operational losses. Current estimates suggest that by the end of this year Airbnb will have spent roughly $150 million on operating expenses. Nevertheless, the company has had little difficulty securing funding from investors who see a strong potential for long term profitability in the future. In the third quarter alone, Airbnb brought in $340 million in overall revenue. Projections for total revenue in 2015 suggest that the company will bring in almost $900 million, which is $75 million above the estimate that was first suggested when it began its $1.5 billion funding collection this spring.

While some have suggested that Airbnb is just another overvalued startup, its revenue numbers have kept current investors confident, despite its seemingly excessive operational expenditures. Like many startups operating in the rapidly developing world of the internet economy, Airbnb has also faced legal challenges. A prominent one in San Fransisco this year cost the company almost $8 million. Much like Uber, Airbnb has had to fight regulations that might negatively affects its long term profitability. It has, however, succeeded in navigating legal waters without serious incident so far.