What Happened: Airbnb filed confidential IPO paperwork Wednesday. The company has some positive tailwinds to show investors, Rao said.

Most notably, unlike Uber Technologies Inc (NYSE:UBER), Airbnb could be EBITDA-positive in "good times," he said. 

Airbnb is "very sound" financially and should emerge from the pandemic with a unique advantage to leverage its 7 million worldwide locations, Rao said, adding that travelers have shown a clear desire to seek out safer hospitality options to which they can drive. 

Manhattan Venture Partners is a mid-to-late stage investor in Airbnb. The venture capital firm bought stakes in Airbnb at multiple stages in recent years.

Why It's Important: Investor demand for private companies remains strong within the venture capital universe, Gao said. While there might be a slowdown in early stage or seed investing activity, later-stage financing of well-established companies is seeing good interest, he said. 

What's Next: Investors will realize that Airbnb is a "good company" with a strong market share, and it also boasts strong "mind share," Gao said.

Related Links:

Thursday's Market Minute: Airbnb Files IPO Paperwork

Fintech Focus For August 20, 2020

Photo courtesy of Airbnb.