<p><img src="https://static5.businessinsider.com/image/57e2caf1077dcc5e1a8b63ee-1800/founders-airbnb-2000.jpg" border="0" alt="founders airbnb Joe Gebbia Brian Chesky" data-mce-source="Airbnb" data-mce-caption="Airbnb co-founders Brian Chesky and Joe Gebbia" data-link="https://a0.muscache.com/airbnb/press/resources/founders-airbnb-2000.jpg"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p><a href="http://www.businessinsider.com/category/airbnb">Airbnb</a> is one of the greatest startup success stories of the last 20 years.</p><p>It raised more than <a href="https://www.forbes.com/sites/bizcarson/2018/10/03/old-unicorn-new-tricks-airbnb-has-a-sky-high-valuation-heres-its-audacious-plan-to-earn-it/#559d13866fa3">$3 billion at a $31 billion valuation</a>, andafter a tumultuous 2020<a href="https://www.businessinsider.com/airbnb-files-s1-public-ipo-paperwork-revenue-losses-covid-19-2020-11">it just filed paperwork to go public</a>. The company is seeking to raise $2.6 billion in its IPO, <a href="https://www.businessinsider.com/airbnb-ipo-billion-35-valuation-mid-december-filing-2020-12'r=US&IR=T">giving it a valuation of up to $35 billion</a>.</p><p>But Airbnb's story wasn't always quite so rosyit stumbled throughout its first year before exploding. The founders shared Airbnb's <a href="http://tiffanyk.com/post/10611384492/honored-nathanblec-shared-original-airbnb">first pitch deck with an MBA student</a>, back when it wanted to be an air mattress rental company.</p><p>Here's what a $31 billion startup looks like when it's just getting started:</p><p><strong>SEE ALSO: <a href="https://www.businessinsider.com/airbnb-files-s1-public-ipo-paperwork-revenue-losses-covid-19-2020-11" >Airbnb's IPO filing reveals exactly how the pandemic has devastated its businessand the startup is already projecting a winter decline as COVID-19 cases surge</a></strong></p><h3>In 2008, when Airbnb was founded, it was called "AirBed&Breakfast."</h3><img src="https://static5.businessinsider.com/image/4e82442b6bb3f78e6c000031-400-300/in-2008-when-airbnb-was-founded-it-was-called-airbedbreakfast.jpg" alt="" /><br/><br/><h3>Back then, there were things like couch surfing, but there really wasn't an easy way to book a room with a local, which the founders thought could be cheaper than hotels.</h3><img src="https://static3.businessinsider.com/image/4e82442feab8ea595b000014-400-300/back-then-there-were-things-like-couch-surfing-but-there-really-wasnt-an-easy-way-to-book-a-room-with-a-local-which-the-founders-thought-could-be-cheaper-than-hotels.jpg" alt="" /><br/><br/><h3>The solution was a "share culture," where locals could make money renting space on their floors via air mattresses to strangers.</h3><img src="https://static4.businessinsider.com/image/4e8246e669bedd326b000018-400-300/the-solution-was-a-share-culture-where-locals-could-make-money-renting-space-on-their-floors-via-air-mattresses-to-strangers.jpg" alt="" /><br/><br/><h3>There were already 630,000 users on competitor site, Couchsurfing.com. So there was some interest in the space.</h3><img src="https://static6.businessinsider.com/image/4e824444eab8eaca50000042-400-300/there-were-already-630000-users-on-competitor-site-couchsurfingcom-so-there-was-some-interest-in-the-space.jpg" alt="" /><br/><br/><h3>The team believed the opportunity was big. Paul Graham, Airbnb's first investor through startup accelerator Y Combinator, wrote an email to fellow investor Fred Wilson expressing his optimism for the company: "There's no reason this couldn't be as big as Ebay. And this team is the right one to do it," he wrote in 2009.</h3><img src="https://static3.businessinsider.com/image/4e82444d69bedd156200005e-400-300/the-team-believed-the-opportunity-was-big-paul-graham-airbnbs-first-investor-through-startup-accelerator-y-combinator-wrote-an-email-to-fellow-investor-fred-wilson-expressing-his-optimism-for-the-company-theres-no-reason-this-couldnt-be-as-big-as-ebay-and-this-team-is-the-right-one-to-do-it-he-wrote-in-2009.jpg" alt="" /><br/><br/><h3>Here's what an early version of Airbnb looked like.</h3><img src="https://static1.businessinsider.com/image/4e824424ecad040a7b00002e-400-300/heres-what-an-early-version-of-airbnb-looked-like.jpg" alt="" /><br/><br/><h3>Unlike a lot of startups, which aim to amass big audiences first then worry about revenue second, Airbnb always had a plan to make money. It wanted to take 10% of each rental transaction.</h3><img src="https://static4.businessinsider.com/image/4e8244526bb3f7aa6c000020-400-300/unlike-a-lot-of-startups-which-aim-to-amass-big-audiences-first-then-worry-about-revenue-second-airbnb-always-had-a-plan-to-make-money-it-wanted-to-take-10-of-each-rental-transaction.jpg" alt="" /><br/><br/><h3>To spread the word about Airbnb, the founders planned to throw events, partner with booking services, and use good old Craigslist.</h3><img src="https://static3.businessinsider.com/image/4e82446169bedd7a78000002-400-300/to-spread-the-word-about-airbnb-the-founders-planned-to-throw-events-partner-with-booking-services-and-use-good-old-craigslist.jpg" alt="" /><br/><br/><h3>Craigslist was perhaps its biggest competitorthat and Hotels.com, the founders concluded.</h3><img src="https://static3.businessinsider.com/image/4e82446a69bedd7e76000008-400-300/craigslist-was-perhaps-its-biggest-competitor--that-and-hotelscom-the-founders-concluded.jpg" alt="" /><br/><br/><h3>The idea for Airbnb now seems like a no-brainer. And it turns out the founders were right about a lot of their competitive advantages. Ease of use, brand and host incentives have all helped the company scale to massive success, and billions in revenue.</h3><img src="https://static5.businessinsider.com/image/4e824470eab8ea605d000007-400-300/the-idea-for-airbnb-now-seems-like-a-no-brainer-and-it-turns-out-the-founders-were-right-about-a-lot-of-their-competitive-advantages-ease-of-use-brand-and-host-incentives-have-all-helped-the-company-scale-to-massive-success-and-billions-in-revenue.jpg" alt="" /><br/><br/><h3>Now don't miss:</h3><img src="https://static2.businessinsider.com/image/5c6d6015598e23576f19e756-400-300/now-dont-miss.jpg" alt="" /><p><h2><a href="https://www.businessinsider.com/this-is-the-first-pitch-deck-foursquare-ever-showed-investors-2011-12">The first pitch deck Foursquare ever showed investors >></a></h2></p><br/><br/>
Click here to read full news..
