How Airbnb Reached a $100+ Billion Market Capitalization
The company was worth $18 billion in April 2020. Its value jumped to $114 billion on its first day on the Nasdaq. It is now a $100+ billion company.
The bankers spoke. They priced Airbnb’s shares at $68 pre-IPO, much higher than the $44 to $50 initial range. The company started trading at $149, under the ticker ABNB, on the Nasdaq. It has now a market capitalization exceeding $100 billion. It reached almost $140 billion at some point, within its first year of trading as a public company.
Back in 2009, the company had a seed round with a valuation of $2 million. You can read more about it directly in this Medium story from Alfred Lin from Sequoia Capital. Sequoia purchased 58 million shares for $585,000, which increased in value from 1 cent a share to as high as $220 post-IPO.
In 2020, Airbnb’s valuation as a private company was about $18 billion. At the time they were seeking fresh capital, as debt, to support operations during the pandemic. The company wanted to face the uncertain environment with a stronger cash position.
Amid COVID-19 affecting travel, Airbnb was still one of the most anticipated initial public offerings of 2020. Airbnb had strong fundamentals, and a…
