HomeAway.com raises $250 million funding
What are the differences between venture backed companies Trulia, Zillow and HomeAway?
1. Monster investment
2. Business model based on subscriptions
3. HomeAway is really a Travel Site (yes, trick question)
Vacation rentals are not a real estate transaction play. HomeAway is dominating this market by acquiring its competitors, and presumably investors are paying for that market position.
Techcrunch states that "the financing is the largest minority investment of a U.S. Internet company in the last eight years, according to Venture Source". With a pre-money evaluation of $1.15 billion and 20x ebitda, it seems like an unusually wild bet in this recessionary climate. Maybe the investors think more people will leap at cheaper condo rentals over hotels.
1. Monster investment
| Company | Total capital raised |
| HomeAway | $459mm |
| Zillow | $87mm |
| Trulia | $33mm |
2. Business model based on subscriptions
| Company | Revenue base |
| HomeAway | ~$150mm - vacation rental owners pay subscriptions for listing |
| Zillow | $? - Advertising |
| Trulia | $? - Advertising |
3. HomeAway is really a Travel Site (yes, trick question)
Vacation rentals are not a real estate transaction play. HomeAway is dominating this market by acquiring its competitors, and presumably investors are paying for that market position.
Techcrunch states that "the financing is the largest minority investment of a U.S. Internet company in the last eight years, according to Venture Source". With a pre-money evaluation of $1.15 billion and 20x ebitda, it seems like an unusually wild bet in this recessionary climate. Maybe the investors think more people will leap at cheaper condo rentals over hotels.
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