MENLO PARK, Calif.--(BUSINESS WIRE)--The financial markets received HomeAway’s IPO favorably today and shares of HomeAway surged 50% in the first hours of trading to over $40 per share representing a market cap of more than $3 billion.
HomeAway is the leading vacation rental marketplace in the world with over 560,000 paid vacation rental home listings and it has by far the largest market share in its industry. Institutional Venture Partners (IVP) invested in HomeAway in 2006, and it is one of the largest investments ever made by the thirty year old venture firm.
“We knew that HomeAway had exceptional market potential when we invested in it five years ago,” said Todd Chaffee, General Partner at IVP and a member of the Board of HomeAway. “They have a talented management team, products that deliver a remarkable ROI, and a great business model with impressive margins.”
HomeAway generated $167.9 million in 2010 revenue, which is up 40% from 2009. Net Income for 2010 grew more than 100% year over year to $16.9 million. Last year, 38% of the company’s revenue came from outside the United States. According to travel market analysts, the vacation rental market is very large – more than $85 billion in the United States and Europe alone.
Located in Austin, Texas, HomeAway, Inc. operates the world's largest online marketplace for the vacation rental industry. The HomeAway marketplace brings together millions of travelers seeking vacation rentals online with hundreds of thousands of owners and managers of vacation rental properties located in over 145 countries around the world.
HomeAway's websites include HomeAway.com, VRBO.com and VacationRentals.com in the United States; HomeAway.co.uk and OwnersDirect.co.uk in the United Kingdom; HomeAway.de in Germany; Abritel.fr and Homelidays.com in France; HomeAway.es in Spain; AlugueTemporada.com.br in Brazil and HomeAway.com.au in Australia. In addition, HomeAway operates BedandBreakfast.com, a comprehensive global site for finding bed-and-breakfast properties, providing travelers with another source for unique lodging alternatives to chain hotels.
About Institutional Venture Partners (IVP)
With $3 billion of committed capital, Institutional Venture Partners (IVP) is one of the premier later-stage venture capital and growth equity firms in the United States. The partnership is currently investing IVP XIII, a $750 million later-stage fund focused on investments in rapidly growing media and technology companies. Founded in 1980, IVP has invested in over 300 companies, 87 of which have gone public. IVP has a 30 year IRR of 43.2% and is one of the top performing firms in the industry. IVP specializes in venture growth investments, industry rollups, founder liquidity transactions and select public market investments. Since its inception, IVP investments include such notable companies as ArcSight (HPQ), Aspect Communications, ComScore (SCOR), Concur Technologies (CNQR), Danger (MSFT), Digital River (DRIV), HomeAway, Juniper Networks (JNPR), Kayak, LegalZoom, LivingSocial, MySQL (ORCL), Netflix (NFLX), Polycom (PLCM), Seagate (STX), Synchronoss (SNCR), Tivo (TIVO), Twitter and Zynga. For more information, visit http://www.ivp.com or follow IVP on Twitter: http://twitter.com/ivp.