The FGB Digest brings you the latest news on the world’s fastest growing direct-to-consumer and challenger brands. In today’s edition: Airbnb raises USD$1bn from PE firm; Blossom Capital opens fund to back Unicorn alumnus; and Lupe turns to Seedrs to take on Dyson. 

Airbnb raises USD$1bn from PE firm

Airbnb has raised USD$1bn in debt and equity from private equity firms Silver Lake and Sixth Street Partners, even as the online rental marketplace has seen its business plummet due to the COVID-19 pandemic.

Terms of the deal were not disclosed. It’s unclear how this funding might alter Airbnb’s previously shared plans to go public.

COVID-19, the disease caused by coronavirus, prompted governments throughout the world to issue stay-at-home orders, triggering a wave of cancellations in the travel and hospitality industries. Airbnb emphasized that the funds would support its ongoing work to invest over the long term, a statement aimed at couching this raise as strategic and not a bailout in troubled times. 

Silver Lake co-CEO and managing partner Egon Durban said in a statement “Airbnb’s diverse, global, and resilient business model is particularly well suited to prosper as the world inevitably recovers and we all get back out to experience it.”

Airbnb is betting how and where people work will evolve. As a result, the company said it will direct its attention and new funds toward three core products: hosts, long-term stays and Airbnb experiences.

Blossom Capital opens fund to back Unicorn alumnus

Just a few months after closing a new USD$185m fund to continue backing early-stage European startups, Blossom Capital, the VC firm founded by Ophelia Brown, is announcing a new angel investment program seeking to back European unicorn alumnus.

Dubbed “Cultivate,” the new program looks to create a 30-strong angel network made up of founders or operators from European unicorns or those with a European HQ, who will be tasked with backing alumni starting up.

This idea is to act as a catalyst for a more robust angel ecosystem in Europe, and in turn trigger a virtuous cycle as employees inevitably leave successful companies to hopefully build the next generation of European unicorns, backed by experienced operators.

Over the next 12 months, Blossom says it aims to invest a total of USD$5m via the Cultivate program into 20 startups in Europe, with a focus on seed and pre-seed (as opposed to Blossom’s Series A sweet spot). Each startup will get an equal investment of USD$250,000, although individual angels are invited to make additional co-investments, too. Beyond capital, Cultivate backed founders will be given access to the angel network throughout the year for insights, advice and learnings.

Lupe turns to Seedrs to take on Dyson

Lupe, a vacuum brand with the tag line “Dyson: it's time to move over”, is funding on Seedrs for its cordless vacuum technology.

Lupe was founded in 2015, and completed a Seed Round of funding in 2017, taking on board an Early Stage VC, and winning a further InnovateUK Grant. They completed the biggest ever crowdfunded vacuum cleaner campaign in beating campaigns run by the Chinese giant, Xiaomi.

The business intends to re-invest profits into growing market share in the floorcare sector, as well as developing products in new verticals to establish the brand. They will focus initially on direct B2C to control the brand and position, and have a new e-commerce site in development, as well as a logistics partner that covers the supply chain from factory gate to customer door. The aim is for content, PR and digital marketing to drive sales growth on the direct channel.

The funds from this round will be deployed primarily on marketing spend and stock, but also on staffing and business overheads.

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