Tech-Internet M&A and Investment Database

Be kept informed of the latest tech deals. Get up-to-the-minute analysis about the day’s most interesting fundings and exits. Internet DealBook is a database that tracks the latest angel, VC, private-equity investment and M&A activities across Internet- and technology-related private companies all around the world.

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Weekly Featured Company: Airbnb

FoundedHeadquartersSectorEmployeesRevenueTotal InvestmentRecent Investment
2007San Francisco, CaliforniaTransactions1,001-5,000 $250M$794.8M$475M
Commentary
True disruption
Airbnb has created a brilliant business model that eventually became a disruptive force in the hospitality industry, changing the way people book accommodations and questioned existing laws and regulations. According to TechCrunch, Airbnb has more than 11 million guests stay since being launched in 2007. And while some cities have tried to ban Airbnb, most have chosen a smarter option: tax and license all operators under Airbnb. What makes the company truly disruptive is it’s the only one that has challenged local hospitality rules and regulations, bringing to light some flaws in the system. By virtue of its revenue, Airbnb has been a darling of investors and has raised $794.8 Million since 2009 and is now valued at around $10 billion. The success of Airbnb only means that times are indeed a-changing. As the economy continues to flounder and spendable income continues to shrink, businesses in the sharing economy will continue to thrive.

Truly remarkable

Commentary

What if you could put all the functionality of a traditional business landline into your smartphone? Empowering your smartphone with functions such as, caller ID, call-forwarding, auto attendant, conference calls, etc. This is exactly what Truly Wireless, a San Francisco-based enterprise software company, has achieved. Truly Wireless has built a ground-breaking enterprise phone system that’s cheaper than traditional systems and runs completely on cellular. The company aims to disrupt how traditional business lines work by offering software that combines the integrated functionality of VOIP systems and the reliability and simplicity of cell phones, at a price that’s 75% lower than traditional phone systems. Truly Wireless has operated in beta since January, and has picked up Boxbee and DocSend as its clients. Today, it has launched out of beta with $1.4 million seed funding from Index Ventures, Greylock Partners, and Boldstart Ventures.

You can read about the funding here.

The battle of the smartglasses is on

Commentary

Based on a report by MarketsandMarkets, the smartglass market is predicted to reach $5.8 billion by the year 2020. Which is why computer hardware companies are all scrambling to create the perfect pair for personal and business use. Leading the pack is Google Glass, the pioneer in augmented reality technology. Google Glass is now being used in some major hospitals in the US. Companies like BMW, Boeing, HP and Taco Bell are likewise using it in their daily operations. Google Glass has become a potential game changer that has spawned a whole group of similar products. There’s the Sony SmartEyeGlass, Toshiba Glass, LaForge Optical Icis, Meta Pro, Optinvent Ora-S, Recon Jet, Huawei Honor, and many more. According to research firm Gartner, smartglass technology has the potential to boost efficiency in manufacturing, field services, the retail industry, and the health services sector. And although the use of smartglasses in the workplace is currently at a nascent stage with market penetration of one less than one percent of companies in the US, Gartner predicts that it may increase to 10% in the next five years. And despite the fact there’s still low acceptance for smartglasses for consumer use, investors have continued to see their potential. Today, Snapchat acquired Vergence Labs, a smartglass manufacturer, for $15 million.

You can read about the acquisition here.

Xiaomi’s bold ambition

Commentary
Apple and Samsung are facing intense competition from Beijing-based smartphone maker Xiaomi. That’s because Xiaomi smartphones have become worthy opponents of the iPhone and the Galaxy phones. With high-tech specs such as, a 2.3GHz Snapdragon 800 chipset, a 13MP camera, 2GB of RAM, 16GB of internal storage and a 5-inch 1080p resolution display, Xioami smartphones are increasingly becoming a favourite of consumers looking for solid hardware at an affordable price. According to a new report from Gartner, Xiaomi is now the fourth biggest seller of smartphones worldwide with sales of more than 18 million units in the third quarter of 2014. A recent regulatory filing also showed that Xiaomi made a profit of $56.1 million in 2013. It is also worth noting that Xiaomi recently hired Hugo Barra, former Vice President of Android Product Management at Google to be in charge of the company’s products and operations in all markets outside of Mainland China.

In addition to its smartphone business, Xiaomi has diversified its product line to include air purifiers, fitness bands, routers, blood pressure measurement kit, battery packs, a smart TV and others. Today it announced a $203.7 million investment in Midea, a Chinese company that manufactures smart appliances. The funding underscores Xioami’s ambitions to be a major player in the smart home space. You can read about the funding here.