Briefing

Montreal-founded Airbnb rival Sonder raises US$210 million, surpassing US$1-billion valuation

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The company will reach a revenue run rate—sales extrapolated over a 12-month period—of $400 million by the end of 2019, it said in a blog post. The investment is led by Chicago-based Valor Equity Partners, Westcap and real estate billionaire Nicholas Pritzker. Montreal-headquartered iNovia Capital also participated in the round. Sonder offers short-term rentals, but unlike Airbnb, it leases, furnishes and manages the apartments itself. (The Logic)

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Talking point: Sonder moved to San Francisco in 2016, but plans to spend some of its new cash in Canada. It will set up a second headquarters in an as-yet unidentified city—Toronto, Montreal and Vancouver are options—where it plans to hire “several hundred” new employees in engineering, design, finance and operations. It would be in good company: the Canadian travel tech ecosystem includes several companies trying to carve out a piece of the lodging market. As The Logic first reported in July, Hopper, a predictive flight-booking app, is adding hotel listings in 1,600 cities this summer. And, Toronto’s SnapTravel, which sells room deals via mobile messaging, raised US$21.2 million in December 2018. Montreal has already produced one successful short-term rental exit—Airbnb acquired Luxury Retreats, which listed high-end properties, for a reported $300 million in 2017.