Invest in Airbnb
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Investment Idea Details
Airbnb users enjoy opportunities to rent all or parts of their properties to travelers. The website provides a platform for communication between guests and hosts and processes transactions. Airbnb offers lodging in 65,000 cities and 191 countries. Since launch in August 2008 over 160 million people found lodging on Airbnb. The company charges its users fees: hosts pay 3% of the booking amount and guests pay 6% to 12% of the booking amount (data as at April 2017).
Airbnb raised over USD 1 billion in the most recent funding rounds, and its capitalization exceeded that of Hilton Worldwide Holdings Inc., the largest hospitality provider globally, valued at USD 23.4 billion.
The estimated capitalization at the time of IPO would run into USD 70 billion, and subject to successful offering, the speculative price increase in the first months after the IPO could elevate the company’s value to USD 150 billion. In an adverse scenario the company would fail demonstrating planned growth figures by continuing its global stepwise expansion, and the company’s capitalization would remain at the current level. An important risk for investors is that Airbnb may go public after 2018, and it will be hard to impossible to find a buyer for shares in the OTC market prior to the IPO.
How Venture Investments Work
United Traders analysts are in continuous search for OTC offers studying financial reporting, companies’ businesses, their future plans, analyzing them as potential acquisition targets or estimating prospective multifold capitalization increase as well as considering risks that may hinder business growth. The best ideas are offered to our investors.
As part of our service for purchasing shares on the OTC market, for its traders and investors United Traders buys units in funds that own equity stakes in private companies. These funds make early-stage investments in private companies or acquire equity stakes from employees of such companies.
United Traders will have shares at its disposal after the IPO. The shares can be sold after the established 6-month Lock-up period. Alternatively, the shares can be hedged for the above period. Prior to the company going public United Traders look for exit options in the OTC market. If we find a great offer, we sell the shares..
After the Lock-up period is over, the investment position will be automatically closed, and generated profits are credited to your account less the applicable UT fees. We offer an opportunity for investors with over $100,000 invested in a specific idea to search for a counterpart in the OTC market individually and to take profits before the company goes public and thereby exiting the trade prior to the Lock-up period expiration.
Although it is prohibited to sell shares within the Lock-Up period, our traders find ways to take profits for our investors using various financial instruments: forwards, options, short selling trades, etc.
For an investor the above means that the investment may be exited after paying a portion of its value, usually around 15% which is caused by highly-priced instruments used to close the position. To do so, you should press the respective button in your members area as soon as it becomes active.
The exiting process is similar to making a new investment. You submit a request, we execute it within 1 business day, and your investment is closed at the current exchange price. However, we rarely recommend exiting your investments early as performance after the Lock-Up Period is better on average.
3.5% of the share purchase amount. The fee is charged at confirmation of your investment bid.
0.5% of the share sell amount after the trade. The fee is charged at the investment exit.
20% of the profit gain. The fee is charged only if the trade is profitable at the time of exiting.
Usually a 15% fee is charged subject to the actual situation at the exchange. The fee is calculated individually for each investment.