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Michael Grimes, “Wall Street’s Silicon Valley whisperer,” says direct listings are “absolutely” more efficient than IPOs

Michael Grimes has been called “Wall Street’s Silicon Valley whisperer” for landing a seemingly endless string of coveted deals for his bank, Morgan Stanley. In more recent years, it has served as the lead underwriter for Facebook, Uber, Spotify and Slack. Grimes, who has been a banker for 32 years — 25 of them at Morgan Stanley —  has also played a role in the IPOs of Google, Salesforce, LinkedIn, Workday and hundreds of other companies.

Because some of these offerings have gone better than others, Morgan Stanley and other investment banks are now being asked by buzzy startups and their investors to embrace more direct listings, a maneuver pioneered by Spotify and copied by Slack wherein rather than sell a percentage of shares to the public in a fundraising event, companies are essentially moving all their stock from the private markets to public ones in one fell swoop.

They cost the companies less money in banking fees. They also immediately free everyone on a company’s cap table to share their shares if they so choose, which has made the concept especially popular with VCs like BIll Gurley and Michael Moritz — though investors also cite the money that companies have been leaving on the table with traditional IPOs. Gurley specifically has talked publicly about underpriced offerings costing newly public outfits $170 billion over the last 30 years.

Grimes, in a rare public appearance last week at a StrictlyVC event, said he supports direct listings completely, calling the “pricing mechanism” more efficient, “absolutely.” He has reason to be a proponent of this new “product.” Both Spotify and Slack turned to Morgan Stanley to organize their direct listings — a process that involves running simultaneous auctions to determine the price at which demand and supply meet — and to ensure there would be enough liquidity for the listings to go smoothly.

Given the success of both, the bank is now better positioned than any to continue orchestrating direct listings for potential issuers, including, reportedly, Airbnb and DoorDash. (Grimes wouldn’t confirm the plans of any companies with which Morgan Stanley plans to work.)

Still, during last week’s sit-down, we wanted to know more about how they work and whether there’s a chance that banks will eventually try to thwart the process, given that they require just as much work, are potentially less lucrative, and keep banks from rewarding some of their best customers — meaning the institutions that are accustomed to being funneled IPO shares ahead of retail investors in traditional offerings.

Grimes patiently sat through roughly 40 minutes of questions, all of which you can read tomorrow if you’re a subscriber of Extra Crunch, where much more of the transcript is being published. In the meantime, here are some highlights from our conversation:

Morgan Stanley was the lead underwriter for Uber. You don’t think Uber went public too late? It seems like it was enjoying a lot of momentum last year, so much so that it was reportedly told by bankers that it could be valued at $120 billion in an IPO — which is nearly triple where it’s valued right now. Did you think it would go out at that number?

MG: If you look at how companies are valued, at any given point of time right now, public companies with growth prospects and margins that are not yet at their mature margin, I think you’ll find on average price targets by either analysts who work at banks or buy-side investors that can be 100%, 200%, and 300% different from low to high. That’s a typical spread. You can have somebody believe a company will be worth $30, $60 or $80 per share three years out. That’s a huge amount of variability.

So that variability isn’t based on different timelines?

MG: It’s based on penetration. Let’s say, what, 100 million people or so [worldwide] have have been monthly active users of Uber, somewhere in that range. So what percentage of the population is that? Less than 1% or something. Is that 1% going to be  2%, 3%, 6%, 10%, 20%? Half a percent, because people stop using it and turn instead to some flying [taxi]?

So if you take all those variable, possible outcomes, you get huge variability in outcome. So it’s easy to say that everything should trade the same every day, but [look at what happened with Google]. You have some people saying maybe that is an an outcome that can happen here for companies, or maybe it won’t. Maybe they’ll [hit their] saturation [point] or face new competitors.

It’s really easy to be a pundit and say, ‘It should be higher’ or ‘It should be lower,’ but investors are making decisions about that every day.

Is it your job to be as optimistic as possible about the pricing? How are you coming up with the number, given all these variables?

MG: We think our job is to be realistically optimistic. If tech stops changing everything and software stops eating the world, there probably would be less of an optimistic bias. But fundamentally — it sounds obvious but sometimes people forget — you can only lose 100 percent of your money, and you can make multiples of your money. I don’t think VCs are as risk-averse as they say, by the way. Some 80% or 90% of investments end up under water, and 5% or 10% produce 10 or 20 or 30x and so that’s the portfolio approach. It’s not as pronounced with institutional investors investing at IPOs, but it’s the same concept: you can only lose 100 percent of your money.

Let’s say you put five equal quantums of investment out to work in five different companies and one of them grows tenfold. Do I even need to tell you what happened with the other four to know you made money? Worst case, you’ve more than doubled your money, and therefore you’re probably going to lean into that again. So generally speaking, there’s an upward bias, but our job is to be realistic and to try to get that right. We view it as a sacred obligation. There’s variability and volatility within that. We try to give really good advice on receptivity. And when the process works as intended, we have predicted it as well as you can within a range of high variability.

StrictlyVC

This summer on CNBC, Bill Gurley told viewers that banks, including the top banks, have mispriced IPOs to the tune of $170 billion over the last three years, meaning that’s the amount of money that companies left on the table. Do you think we need direct listings and can you explain why they could potentially be better?

MG: Sure. We think Bill has done a great service by focusing a spotlight on the product, which we innovated with Spotify and then later with Slack . We do love the product, we’re bullish on it.

You’re asking how they work?

TC: Yes, as it relates to price discovery. So in a direct offering, you’re talking to people who own the stock and people who might want to buy the stock to figure out where they meet, which doesn’t sound that different than what goes on with a traditional IPO.

MG: It’s actually different in a technical way. In a traditional IPO, there’s a range, let’s say $8 to $10. And the orders we’re taking every day for two weeks, let’s say, while the prospectus is filed, we’re taking orders from institutions [regarding] how many shares they want to buy within that range. That means generally within that range, they’re buying. It’s not binding but generally speaking, they’re going to follow through. If it’s outside of that range, we have to go back and ask them again. So if there’s a whole lot of demand and the number of shares being sold is fixed so that supply is fixed . . . the company’s goal is for oversubscription because they want an upward bias. They don’t want to trade up too much [and leave] money on the table and they don’t want to trade down at all — even a little bit — and they don’t want to trade flat because that could be [perceived] to be down; they want to trade up modestly. An exception was the Google IPO, which was designed to trade flat and traded up modestly, 14% or something like that.

The range might be moved once, maybe twice — because there’s not a lot of time because there’s a regulatory review to turn it around — so [let’s say] it’s moved from $8 to 10 to $10 to $12 and there’s still much more demand than supply; it’s a judgment call as to, is that going to price at $14? $15? $12? Some investors might think it should trade at $25 while others think it should trade at $12. So there could be real variability there, and when trading opens, only the shares that were sold the night before in the IPO, some subset of them are trading and that’s it, everything else is locked up —  the whole cap table. So for six months, it’s those same shares trading over and over, other than maybe [a small sampling] or investors of former employees who weren’t locked up.

TC: Okay, so let’s switch now to a direct listing.

MG: So with a direct listing, the company is not issuing any shares. There is no underwriting where the banks buy the shares and sell them immediately to institutional and retail investors. But there is market making and the way the trading opens is similar but the size is totally flexible. There’s no lock-up. The whole cap table can essentially sell shares, versus the average IPO right now where I think it’s 16 percent of the cap table is sold in an IPO, and that’s down by half, by the way, from 15 years ago.

TC: So everyone can sell on day one, but are there handshake deals to ensure that not everyone dumps the shares on day one?

MG: No, there’s no hidden agreement. They can sell as many shares as they want, but it’s going to depend on the price. The way a direct listing opens trading is a critical function because there’s no order book. No one has been taking orders for two weeks. The company has met with investors and done investor education. We’ve helped them write a prospectus, etcetera, but there are no orders, there’s no price range, and off we go. With Slack and Spotify, we were the bank responsible for the trading. What that means is on our trading floor in Times Square, our head trader, John Paci, and his team are in touch with anyone on the cap table who might want to sell and institutional investors who might want to buy, and what’s happening are two auctions at the same time.

So in the traditional IPO, we were taking orders for size within a range that might move a little bit, [but] this is now any price. So take the buyers. [We’re trying to find out] who will pay $8 who will pay $12. Will anyone pay $16? So you’re taking that demand and sorting it by price. At the same time, you’re taking that supply, asking, ‘VC No. 1, is there a price at which you would sell shares?’ If this person says, ‘Yes, but at $20’ and we don’t have any demand at that price, then we figure out: who would sell at $18? Maybe VC No. 2 says they would sell 5 percent of their shares at $18. So we have some buyers, but it’s not enough to open trading with enough liquidity, which is key to all this. If you had one VC and one buyer, the buyer would go away. They’d say, ‘You didn’t tell me I was going to be trading with myself.’ So we have to figure out where a simultaneous demand auction for the highest price, and a supply reverse auction for the lowest price clears and meets. If you can move a billion dollars worth of stock at $14 and get demand for a billion worth of stock, then that’s the price.

That’s then sent to the exchange where the exchange can take and add any other market maker or bank that has another seller or a buyer — so they add in, call it, another 30 percent from other brokers — and that produces the opening transaction.

Stay tuned tomorrow for much more from that interview, where other discussion areas included whether lock-up periods might eventually be done away with in traditional IPOs, why VCs are suddenly so motivated to bang the drum on direct listings, and what really went wrong with Google’s auction-style offering back in 2004.

Airbnb to ban ‘party houses’ in wake of Halloween shooting that left 5 dead

Airbnb CEO Brian Chesky said Saturday the company will ban “party houses” and take other steps to safeguard hosts and guests after five people died at a Halloween party hosted at California home that was rented on the service.

Chesky made the announcement via a series of tweets Saturday. “What happened on Thursday night in Orinda, CA was horrible,” Chesky wrote. “I feel for the families and neighbors impacted by this tragedy — we are working to support them.”

Chesky then announced that party houses would be banned and that the company is “redoubling” efforts to combat unauthorized parties.

Starting today, we are banning “party houses” and we are redoubling our efforts to combat unauthorized parties and get rid of abusive host and guest conduct, including conduct that leads to the terrible events we saw in Orinda. Here is what we are doing:

Brian Chesky (@bchesky) November 2, 2019

Chesky announced several other measures to increase safety, including the expansion of manual screenings of high-risk reservations flagged by Airbnb’s risk detection technology and creating a dedicated “party house” rapid response team

Margaret Richardson, from Airbnb’s executive team, has been tasked to accelerate the review process to enact these new policies as soon as possible, he added.

I have directed Margaret Richardson from our Executive Team to oversee this new team and initiate a 10 day sprint to review and accelerate the development and implementation of these new safety initiatives.

— Brian Chesky (@bchesky) November 2, 2019

 

Contra Costa County Sheriff’s Office said the party had been advertised on social media as a mansion party, the San Francisco Chronicle reported. Police were headed to the home Oct. 31 over noise complaints when the gunfire began around 10:50 p.m. Several people died at the scene. The fifth victim died Friday night.

How to get people to open your emails

Julian Shapiro
Contributor

Julian Shapiro is the founder of BellCurve.com, a growth marketing agency that trains you to become a marketing professional. He also writes at Julian.com.

We’ve aggregated the world’s best growth marketers into one community. Twice a month, we ask them to share their most effective growth tactics, and we compile them into this Growth Report.

This is how you’re going stay up-to-date on growth marketing tactics — with advice you can’t get elsewhere.

Our community consists of 600 startup founders paired with VP’s of growth from later-stage companies. We have 300 YC founders plus senior marketers from companies including Medium, Docker, Invision, Intuit, Pinterest, Discord, Webflow, Lambda School, Perfect Keto, Typeform, Modern Fertility, Segment, Udemy, Puma, Cameo, and Ritual .

You can participate in our community by joining Demand Curve’s marketing webinars, Slack group, or marketing training program. See past growth reports here and here.

Without further ado, onto the advice.


How can you send email campaigns that get opened by 100% of your mailing list?

Based on insights from Nick Selman, Fletcher Richman of Halp, and Wes Wagner.

  • First, a few obvious pieces of advice for avoiding low open rates:
    • Avoid spam filters by avoiding keywords commonly used in spam emails.
    • Consider using email subjects (1) that are clearly descriptive and (2) look like they were written by a friend. Then A/B your top choices.
    • Include the recipient’s name in your email body. This signals to spam filters that you do in fact know the recipient.
  • Now, for the real advice: Let’s say 60% of your audience opens your mailing, how can you get the remaining 40% to open and read it too?
    • First, wait 2 weeks to give everyone a chance to open the initial email.
    • Next, export a list of those who haven’t opened. Mailchimp lets you do this.
    • Important note: The reason many recipients don’t open your email is because it was sent to Spam, it was buried in Promotions, or it was insta-deleted because it looked like spam (but wasn’t). The goal here is to resuscitate these people. You have two options for doing so:
    • (1) Duplicate the initial email then selectively re-send it to non-openers. This time, use a new subject (try a new hook) and downgrade the email to plain text: remove images and link tracking. De-enriching the email in this way can help bypass spam filters and the Promotions tab.
    • (2) Alternatively, export your list of non-openers to a third-party email tool like Mailshake (or Mixmax).
      • First, connect Mailshake to a new Gmail account on your company domain.
      • Next, configure Mailshake to automatically dole out small batches of emails on a daily schedule. Let it churn through non-openers slowly so that Gmail doesn’t flag your account as a spammer.
      • Emails sent through Mailshake are more likely to get opened than emails sent through Mailchimp. Why? Mailshake sends emails through your Gmail account, and Gmail-to-Gmail emails have a greater chance of bypassing Spam and Promotions folders, particularly if the sender doesn’t have a history of its emails being marked as spam.

Fresh out of Y Combinator, Tandem lands millions from Andreessen Horowitz

Tandem, one of the most sought after companies to graduate from Y Combinator’s summer batch, will emerge from the accelerator program with a supersized seed round and an uncharacteristically high valuation.

The months-old business, which is developing communication software for remote teams after pivoting from crypto, is raising a $7.5 million seed financing at a valuation north of $30 million, sources tell TechCrunch. Airbnb investor Andreessen Horowitz is leading the round.

Tandem and a16z declined to comment for this story. The round has yet to close, which means the deal size is subject to change. Y Combinator startups raise capital using SAFE agreements, or simple agreements for future equity, which allow investors to buy shares in a future priced round at a previously agreed-upon valuation.

We’re told several top venture capital firms were vying for a stake in Tandem. One firm even gifted the founders a tandem bike, sources tell TechCrunch, resorting to amusing measures to sway the Tandem team. But it was a16z — which has an established interest in the growing future of work sector, evidenced by its recent investment in the popular email app Superhuman — that ultimately won the coveted lead investor spot.

Tandem provides a virtual office for remote teams, complete with video-chatting and messaging capabilities, as well as integrations with top enterprise tools including Notion, GitHub and Trello. The service launched one month ago and has signed contracts with Airbnb, Dropbox and others. The company claims to be growing 50% week-over-week.

“Every company is a remote company,” Tandem chief executive officer Rajiv Ayyangar said during his pitch to investors on day two of Y Combinator Demo Days this week. “You have salespeople in the field, [companies with] multiple offices, people working from home. Tandem isn’t just building the future of remote work, it’s building the future of work.”

Ayyangar was previously a data scientist at Yahoo before joining Yakit, a startup seeking to simplify ecommerce delivery, as the director of product. Co-founders Bernat Fortet Unanue and Tim Su are also Yahoo alums.

We’re told Tandem’s fundraise was nearly complete before it pitched to investors Tuesday afternoon. Startups that participate in YC are often flooded with offers from VCs throughout the three-month program. Firms are hungry for the batch’s Airbnb, Dropbox or Stripe — graduates of the program — and will pay premiums on startup equity for their chance to invest in a future ‘unicorn.’

As a result, the median seed deal for U.S. startups in 2018 was roughly $2 million — a record high — with typical pre-money valuations hovering north of $10 million. Tandem’s seed financing represents both a trend of swelling seed deals and valuations, as well as a tendency for VCs to dole out more cash to fresh-from-YC companies amid heightened competition amongst their peers.

The previous YC batch, which wrapped up in March, included ZeroDown, Overview.AI and Catch, a trio of companies that pocketed venture capital ahead of demo day. ZeroDown, a financing solution for real estate purchases in the Bay Area, raised upwards of $10 million at a $75 million valuation before demo day, sources told TechCrunch at the time (months after demo day, Zero Down announced a whopping $30 million financing). ZeroDown was an outlier, of course, as the company’s founders had previously co-founded the billion-dollar HR software company Zenefits.

As for the summer batch, we’re told Actiondesk, Taskade and Tandem are amongst the startups to garner the most hype from investors. Some even forwent the demo day pitch altogether. BraveCare, which is creating urgent care clinics intended just for kids, raised $4.1 million ahead of demo day, we’re told. The company opted not to pitch to additional investors this week.

You can read about all the company’s that pitched during demo day one here and demo day two here.

The Wing poaches Snap’s comms director

Women-focused co-working space The Wing has hired Rachel Racusen as vice president of communications. Racusen has been the director of communications at Snap, the developer of Snapchat, since late 2016.

Racusen’s exit represents the latest in a series of departures at the “camera company.”

Earlier this year, the company’s chief financial officer Tim Stone stepped down. Shortly after, The Wall Street Journal reported that Snap had fired its global security head Francis Racioppi after an investigation uncovered that he had engaged in an inappropriate relationship with an outside contractor. Snap CEO Evan Spiegel reportedly asked the company’s HR chief Jason Halbert to step down as a result of the investigation’s findings.

Racusen worked under Snap’s chief communications officer Julie Henderson, who had joined late last year from 21st Century Fox.

Racusen has a history in politics similar to several other executives at The Wing. Ahead of her Snap tenure, she served as the associate communications director under President Barack Obama . Before that, she was a vice president at MSNBC and the public affairs firm SKDKnickerbocker, where The Wing co-founder and chief executive officer Audrey Gelman worked prior to launching her business.

Four months after closing a $75 million Series C, The Wing is making two other key additions to its management team. The company has brought on Nickey Skarstad as vice president of product and Saumya Manohar as general counsel. Skarstad joins from Airbnb, where she was a product lead on the Airbnb Experiences team. Saumya Manohar spent the last three years as Casper’s vice president of legal.

Backed by Sequoia Capital, Upfront Ventures, NEA, Airbnb, WeWork and others, The Wing has raised more than $100 million to date.

“We’re thrilled to be bringing this group of seasoned and talented women to build out our executive team,” Gelman said in a statement. “The Wing is the perfect home for leaders who thrive on fast growth and want to combine their social values with their work practice.”

Shared housing startups are taking off

When young adults leave the parental nest, they often follow a predictable pattern. First, move in with roommates. Then graduate to a single or couple’s pad. After that comes the big purchase of a single-family home. A lawnmower might be next.

Looking at the new home construction industry, one would have good reason to presume those norms were holding steady. About two-thirds of new homes being built in the U.S. this year are single-family dwellings, complete with tidy yards and plentiful parking.

In startup-land, however, the presumptions about where housing demand is going looks a bit different. Home sharing is on the rise, along with more temporary lease options, high-touch service and smaller spaces in sought-after urban locations.

Seeking roommates and venture capital

Crunchbase News analysis of residential-focused real estate startups uncovered a raft of companies with a shared and temporary housing focus that have raised funding in the past year or so.

This isn’t a U.S.-specific phenomenon. Funded shared and short-term housing startups are cropping up across the globe, from China to Europe to Southeast Asia. For this article, however, we’ll focus on U.S. startups. In the chart below, we feature several that have raised recent rounds.

Notice any commonalities? Yes, the startups listed are all based in either New York or the San Francisco Bay Area, two metropolises associated with scarce, pricey housing. But while these two metro areas offer the bulk of startups’ living spaces, they’re also operating in other cities, including Los Angeles, Seattle and Pittsburgh.

From white picket fences to high-rise partitions

The early developers of the U.S. suburban planned communities of the 1950s and 60s weren’t just selling houses. They were selling a vision of the American Dream, complete with quarter-acre lawns, dishwashers and spacious garages.

By the same token, today’s shared housing startups are selling another vision. It’s not just about renting a room; it’s also about being part of a community, making friends and exploring a new city.

One of the slogans for HubHaus is “rent one of our rooms and find your tribe.” Founded less than three years ago, the company now manages about 80 houses in Los Angeles and the San Francisco Bay Area, matching up roommates and planning group events.

Starcity pitches itself as an antidote to loneliness. “Social isolation is a growing epidemic—we solve this problem by bringing people together to create meaningful connections,” the company homepage states.

The San Francisco company also positions its model as a partial solution to housing shortages as it promotes high-density living. It claims to increase living capacity by three times the normal apartment building.

Costs and benefits

Shared housing startups are generally operating in the most expensive U.S. housing markets, so it’s difficult to categorize their offerings as cheap. That said, the cost is typically lower than a private apartment.

Mostly, the aim seems to be providing something affordable for working professionals willing to accept a smaller private living space in exchange for a choice location, easy move-in and a ready-made social network.

At Starcity, residents pay $2,000 to $2,300 a month, all expenses included, depending on length of stay. At HomeShare, which converts two-bedroom luxury flats to three-bedrooms with partitions, monthly rents start at about $1,000 and go up for larger spaces.

Shared and temporary housing startups also purport to offer some savings through flexible-term leases, typically with minimum stays of one to three months. Plus, they’re typically furnished, with no need to set up Wi-Fi or pay power bills.

Looking ahead

While it’s too soon to pick winners in the latest crop of shared and temporary housing startups, it’s not far-fetched to envision the broad market as one that could eventually attract much larger investment and valuations. After all, Airbnb has ascended to a $30 billion private market value for its marketplace of vacation and short-term rentals. And housing shortages in major cities indicate there’s plenty of demand for non-Airbnb options.

While we’re focusing here on residential-focused startups, it’s also worth noting that the trend toward temporary, flexible, high-service models has already gained a lot of traction for commercial spaces. Highly funded startups in this niche include Industrious, a provider of flexible-term, high-end office spaces, Knotel, a provider of customized workplaces, and Breather, which provides meeting and work rooms on demand. Collectively, those three companies have raised about $300 million to date.

At first glance, it may seem shared housing startups are scaling up at an off time. The millennial generation (born roughly 1980 to 1994) can no longer be stereotyped as a massive band of young folks new to “adulting.” The average member of the generation is 28, and older millennials are mid-to-late thirties. Many even own lawnmowers.

No worries. Gen Z, the group born after 1995, is another huge generation. So even if millennials age out of shared housing, demographic forecasts indicate there will plenty of twenty-somethings to rent those partitioned-off rooms.

Y Combinator is going after Chinese startups with its first official event in China

High-profile U.S. startup accelerator Y Combinator is making a push to bring more China-based startups into its program after it announced its first official event in the country.

YC has made a push to include startups from outside of North America in recent years. That has seen it bring in companies from the likes of India, Southeast Asia and Africa, but China remains underrepresented. According to YC’s own data, fewer than 10 Chinese companies have passed through its corridors. YC counts over 1,400 graduates.

“Startup School Beijing” is scheduled for May 19 in the Chinese capital at Tsinghua University. The event will be free to attend — though attendees might apply for a ticket — with the goal of showing the benefits of participation in its U.S. program.

To help make its case, the organization has pulled in star graduates like Airbnb and Stripe while its president Sam Altman himself is scheduled to appear.

The event will include sessions with graduates, YC partners and “live on-stage office hours.” That’ll see three companies picked from the audience to get advice and tips from the attending partners, as happens in the program. Sessions will be in both English and Chinese with live translations available.

YC partner Eric Migicovsky, who founded Pebble, is leading the event, which will include the following speakers:

In addition to helping U.S. hardware founders, Migicovsky was brought on specifically to make inroads into China and he is optimistic that there is strong demand.

“We’re hosting Startup School in Beijing to meet local entrepreneurs and start a dialogue about how YC can help,” he told TechCrunch. “The event and the founders we meet will help to inform our strategy going forward. Naturally, we hope to find Chinese startups to apply to our core Y Combinator program in Silicon Valley.”

YC officially announced the event today but the organization’s brand is so strong that word already got out in local media once it began sending out invitations, as our Chinese partner Technode reported.

Badi bags $10M to build out its room rentals platform in Europe

 Barcelona-based Badi launched a marketplace for urban room rentals in September 2015 with the goal of making it easier to find flatmates. The startup has now closed a $10M Series A investment, led by Spark Capital, with the aim of ramping up its presence across Europe. Read More

Airbnb wants to assure you its vision is ‘good for society’

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In an open letter, the head of Airbnb talked about being a relevant, useful, and purposeful company — and most importantly, one that doesn’t destroy society.

CEO and co-founder Brian Chesky laid out the company’s vision in the letter, and stressed the importance of appeasing not just employees and shareholders, but also the wider community outside of the Airbnb bubble — presumably including people who’ve accused the company of pushing rents higher in tight housing markets. 

Without naming certain social media platforms (ahem, Facebook), he voiced concerns over the widening political divide.  Read more…

More about Airbnb, Brian Chesky, Company Goals, Tech, and Sharing Economy

VCs determined to replace your job keep AI’s funding surge rolling in Q2

 These are good times for AI entrepreneurs. Venture, corporate and seed investors have put an estimated $3.6 billion into AI and machine learning companies this year, according to Crunchbase data. That’s more than they invested in all of 2016, marking the largest recorded sum ever put into the space in a comparable period. Read More

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Japan passes law legalizing Airbnb and other sharing economy rentals

 There’s good news for Airbnb in Japan where the government has approved legislation that legalizes its service, and others like it, in the country. The law, which was passed by Japan’s upper house on Friday, will allow home-owners to let out their property to paying guests for up to 180 days per year. They are subject to registering with local authorities who, in turn, have license… Read More

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People are making fun of Airbnb's new Chinese name

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The ink has barely dried on Airbnb’s new Chinese name, but the jokes have come fast.

To launch Trips in China, U.S. home-rental company showed off a new name to match, Aibiying.

It says Aibiying (爱彼迎) means to “welcome each other with love.”

But the Chinese think it sounds awkward, and isn’t easily understood.

One Weibo user griped that it’s hard to pronounce two similar-sounding syllables one after the other.

He also added that Aibiying sounds more like “to love to fulfill requests” or worse, “to love Bing” — Microsoft’s search engine’s Chinese name is “Biying.” Read more…

More about Airbnb, China, and Business

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Crunch Report| Airbnb Raises $1 Billion

Google’s Jamboard will cost $5,000 plus an annual management fee, Airbnb closes Series F to go over $1 billion, Google goes after Slack and Mark Zuckerberg and Priscilla Chan are expecting their second baby. All this on Crunch Report. Read More

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Tech takes a softer initial stance on Trump’s latest executive order

 After several courts shot down his executive order that banned travelers from seven nations from entering the United States, President Trump today made another attempt to implement his proposed Muslim immigration ban. Trump signed a new executive order this morning that reduces the list of affected nations to six — it now excludes Iraq — and provides some clarity about the… Read More

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Crunch Report | DeviantArt Acquired by Wix

DevianArt gets acquired by Wix, AirMap raises $26 million, Airbnb buys Tilt, Google releases perspective for comment toxicity rating and more. All this on Crunch Report. Read More

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Airbnb finalizes deal to buy social payments startup Tilt

tilt founders khaleed james beshara Airbnb has finalized its deal to buy social payments startup Tilt, TechCrunch has confirmed. We reported on the acquisition talks last month, but now everything has been made official. We are told that investors will be getting back about $12 million in cash, but the deal value is tens of millions of dollars higher if you include employee retention packages, which were paid for in cash… Read More

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A big apartment management company is suing Airbnb

The Paris Aquarium And Airbnb Organize A Contest To Offer Winners A Night Underwater With Sharks Oh, how the tables can turn. After suing San Francisco, New York City and Anaheim, Airbnb has found itself on the other side of a lawsuit. Apartment Investment & Management Company (Aimco), which owns or manages about 50,000 properties, is suing Airbnb, saying that the company is deliberately incentivizing people to breach their leases, The Wall Street Journal reported. Aimco, which filed… Read More

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Crunch Report: Twitter’s Ad Revenue Stalls

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Written and hosted by: Anthony Ha
Edited by: Joe Zolnoski
Filmed by: Matthew Mauro
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Airbnb offers free housing to those affected by Muslim travel ban

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Airbnb said it will help those affected by Donald Trump’s Muslim travel ban on Saturday, but is yet to share the fine print.

The company’s cofounder and CEO Brian Chesky wrote on Facebook that Airbnb will provide free housing to refugees and people not in their home city who are denied the ability to board flights.

“We have 3M homes, so we can definitely find people a place to stay,” he wrote, asking people to reach out to him via his personal email.

An Airbnb spokesperson told Mashable more detail would be shared in the coming days. “We will leverage existing tools, like our disaster response tools, among others,” he added.  Read more…

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