Airbnb has managed to raise $1 billion to help run the business and pay the bills during the downturn. Most of its properties have shut down thanks to the spread of the coronavirus.

Airbnb Latest Capital Raise

Silver Lake and Sixth Street Partners will invest $1 billion in a combination of debt and equity for Airbnb. This capital can help the business operate until government officials lift travel restrictions. The terms and valuation of the deal are not public. That said, various reports indicate that the deal is favorable to Airbnb.

No requirements reportedly exist for an IPO date in this deal.

In March, the company lowered its internal valuation to $26 billion, from the $31 billion listed in the last capital raise in 2017.

The travel industry is reeling as almost all hospitality companies have closed and have generated no revenue. Publicly traded hospitality companies have taken a much larger hit from the slowdown and sell-off.

Capital Deployment

The cash will help offset the $250 million fund Airbnb set aside to reimburse hosts who had cancellation between March and May.

The short term rental company offered the return of deposits on all rentals in that time frame. This left many hosts scrambling to find a way to pay mortgages on those properties. Rather than lose hosts, the company decided to use the fund to pay back the owners with cancellations.

This economic slowdown will probably push back the hoped for Initial Public Offering until sometime in 2021 at the earliest.

Related: Venture Capital: Who Will Dare to IPO After 2019’s List of Stumbles