Airbnb’s latest financing round is being led by private equity firm General Atlantic, and includes Hillhouse Capital Group, a Chinese fund manager, and Tiger Global Management, which just led a big $80 million financing for Postmates. The deal is expected to be officially announced today, Monday, June 29.

Questions:
1. What is a “private IPO”?
2. What is Airbnb and what does the company do?
3. What is Airbnb’s track record on profits and what is the company’s projected profit for this year?
4. What potential hurdles does the company face?

Source:

CNN Staff. (2015). ‘Crazy money’ – Airbnb valued at over $25 billion. CNN Money, June 27 (Retrievable online at http://money.cnn.com/2015/06/27/technology/airbnb-funding-valuation-update/)