Airbnb Raises $850 Million at $30 Billion Valuation--Update

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Airbnb Inc. has brought on Alphabet Inc.'s growth-equity arm as an investor, part of an expected $850 million round that values the home-rental company at $30 billion, people close to the deal said.

In addition to the new cash, employees who have been with the company for more than four years had the opportunity to sell common shares to investors as part of the deal. Roughly $200 million of employee stock was sold as part of that fundraising, these people said.

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Google Capital and growth-equity firm Technology Crossover Ventures co-led the round, the people said, valuing the company at $105 a share, higher than the $93.09 a share investors paid in last year's round that put Airbnb's valuation at $25.5 billion.

Investors bought the employee stock at a discount -- last year's $93.09 a share price -- because the common stock doesn't grant investor protections like preferred stock does, the people said.

Airbnb may accept more funding from additional investors in the round, two people familiar with the matter said.

The deal is designed in part to relieve some of the pressure to go public, as the company will have more funds to spend on expansion overseas, and can give longer-term employees the option to get cash for some of their shares, the people said.

Write to Maureen Farrell at maureen.farrell@wsj.com and Greg Bensinger at greg.bensinger@wsj.com