Airbnb Reveals Falling Income, With Journey Hit by Pandemic
Other technical public offers have been delayed. Ant Financial, the Chinese financial technology company, was slated for the largest public offering this month, valued at $ 310 billion with the expectation that it would raise $ 34 billion. However, Chinese regulators put the offer on hold after saying the company no longer met the requirements to be listed.
Airbnb’s public debut has been expected for years. The San Francisco company is one of the best-known startups to emerge from a generation of sharing economy companies born after the 2008 recession. The startups, which include Uber, DoorDash, WeWork, and Instacart, are driving a wave of smartphones, cheap cloud computing, and gig work. The ample venture capital funding allowed them to stay private and put off a profit.
If Airbnb goes public in the coming months, the company will stop offering before a compensation period that affects many of its employees. Startups like Airbnb compensate workers, especially those who join in their early years, with potentially lucrative stock options and restricted stock units. However, if a company waits too long to sell or go public, that equity can expire and become worthless. If Airbnb goes public before the end of the year, employees will avoid losing a large tranche of equity that is slated to expire next spring.
The IPO could also enrich Airbnb’s earliest supporters, some of whom invested 12 years ago, and turn its founders into billionaires.
Airbnb has raised more than $ 3 billion in venture capital. The largest shareholders include Silver Lake and Sixth Street, who invested in the company in the wake of the pandemic. Sequoia Capital, Founders Fund and Accel also have significant stakes.
The founders of Airbnb – Brian Chesky, the managing director, as well as Nathan Blecharczyk and Joe Gebbia – each own around 15 percent of the shares in class B. In a step that is common for companies from Silicon Valley, the founders have a special share class for worked out giving them 20 votes per share and disproportionate control over the company.
The three men founded Airbnb in 2008 after renting a guest room in their apartment to make extra cash. This idea grew into a company that has since grown to seven million entries in almost every country.