AirBnB Rejections That Drove Initial Investors To Be Billionaires
Updated: Oct 2, 2019
AirBnB has revolutionised the tourism industry. It projects a community by providing a platform to both the owners and globetrotters. The key strategy here is to charge fees for providing a platform to both, travelers and private property owners. Allowing both the parties to simplify the process. Moreover, this has helped the users to exchange economy.
The key takeaways from this business model don’t end here. Before the idea started back in 2008, this model has hit the bottom seven times. The rest of the proposals didn’t even break a bone.
The duo was set to meet seven investors on the 26th of June the same year. They were to meet in the silicon valley and attempt to raise $150K at a valuation of $1.5M. In a post on Medium, Brian Chesky, the co-founder, thanked the 5 rejections that they receive. The other two investors didn’t respond.
No entrepreneur is destined, but they work hard. They learn from what they receive as feedbacks. There can be a lot of things that you can learn. Failures are meant to teach and not demotivate.
AirBnB is the biggest platform for accommodation seekers on the go. These rejections that the CEO was getting while trying to raise 150K for 10% equity in AirBnB, suggests that no problem is big enough. The duo was raising funds at a valuation of $1.5 mln at that time, and today the company is valued at $38 bln.
Today this 10% equity is worth $3,8 billion. Investors would have got 25300x return on investment. This means if you were to invest $100, you’d be receiving a sum of 2,530,000$ today.
The response AirBnB co-founders received initially, helped this company reach a value of $38 Bn. This is something that can only be achieved with sheer motivation. Motivation to achieve.