Airbnb valued at $10bn after fundraising

Airbnb, the online flat rental company, has raised $450m (£268m) in a fundraising which values the business at $10bn.

The private equity giant TPG, whose investments have included Debenhams and Punch Taverns, and Sequoia Capital, whose past successes include Google and LinkedIn, are among the new investors.

The valuation – which makes paper billionaires out of its three founders – makes Airbnb one of the most valuable unlisted start-ups, worth more than a number of major hotel chains, including the London-listed Intercontinental Hotels Group and its US rival Hyatt Hotels.

The enhanced valuation comes despite the company suffering as a result of increased pressure from local authorities around the world.

In New York, the company is fighting in the state’s supreme court, in a case to determine if it is breaking state laws by allowing renters to sublet their flats for more than 30 days. The case is one of several challenges Airbnb faces as it continues to fight the hotel industry, which is aggrieved that Airbnb landlords do not have to pay taxes or insurance for their rentals.

David Hantman, Airbnb’s head of public policy, told The Telegraph this weekend that the company is here for good: “The world is going in our direction. People demand it and it is here to stay.”

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