The risky table is at the back... Airbnb and Slack just sealed 2 nearly identical deals, with two very different deal terms. Slack's office messaging, email-crushing biz model is thriving in the corona-conomy. Airbnb's travel-centric pad rental biz? Not so much. Despite these differences, they both decided it was time to borrow some cash.
What's your risk premium?... Not a Hinge-appropriate question. Slack is borrowing cash because it's growing (to thrive) — Airbnb is borrowing because it's sinking (to survive). That makes it way more risky. Investors can smell desperation:
The virus premium is unavoidable... for Airbnb, WeWork, and any travel/rental company unable to operate right now. Most are affected by this risk premium, because we're living in risky times. And companies that are faring well in the corona-conomy — like Slack, Zoom, and Netflix — can't pat themselves on the back either. They're just lucky that their businesses weren't as affected as others by unforeseeable circumstances.