It’s slated to be one of the most high-profile companies to go public next year.Īirbnb executives have been talking about an IPO since at least 2018 and the extended timeline has caused tension inside the company. With a private valuation of $31 billion, Airbnb is likely to be a topic of discussion. The event is sponsored by 12 venture capital firms and will include Mike Moritz of Sequoia Capital, the biggest venture capital backer of Airbnb, Benchmark's Bill Gurley and Spotify's Chief Financial Officer Barry McCarthy.
On Tuesday, hundreds of venture capitalists and executives from private companies will meet in Silicon Valley to discuss the benefits of direct listings. Amid the ensuing scrutiny, the CEO was forced to resign and financial advisers said WeWork’s potential valuation would likely fetch only about a quarter of its earlier $47 billion (€43 billion). The We Co., which was supposed to have an IPO this fall, had to withdraw its plans after some investors took a look and were highly critical. and Spotify Technology have taken the direct listing route.Īn IPO would also force Airbnb to open its books to investors. Instead, they let the market choose the price. A direct listing allows companies to lower the millions of dollars they typically pay to investment banks in underwriting fees, because they don't issue any new shares and don't raise any new capital.
Some of the new generation of tech firms have spent years raising private funds and don't necessarily need money from an IPO to expand their business, but are looking for a way to let employees and investors cash out. Technology startups usually choose a traditional IPO to tap into the public markets. San Francisco-based Airbnb is laying the groundwork for a direct listing rather than an initial public offering, according to people familiar with the matter who asked not to be named discussing private information. Airbnb’s long-awaited Wall Street debut is officially earmarked for 2020, but the home-share startup is charting an unconventional path to the public markets.
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