Airbnb - Acquired  ## Metadata - Author: **Acquired** - Full Title: Airbnb - Category: #podcasts - URL: https://share.snipd.com/episode/76d3cd4e-2032-42d9-86ea-95bce9d81462 ## Highlights - Y, You're Doing What? And How Many People Are Using This? Summary: Sibel and justin con introduced bryan and joe to a bunch of angels. The angels are like, you're doing what? And how many people are using this? A, no. Tenof the people who are using it are the founders. So they go check out wy c. It's still pretty arly at this point. But there haven't been any other few houters yet. Jstand t v in justn nobody really knows outside of the valley about them yet. Transcript: Speaker 2 Tenof the people who are using it are the founders. O ye. Speaker 1 So he moves back, and once again, nothing really cin happens with the sight for the next few months. But meanwhile, sibel did make good on his introduction, and he and justin can introduced bryan and joe to a bunch of angels. They go and do these meetings with sand. The angels are like, you're doing what? And how many people are using this? A, no. Thank you. So brian actaly woud write a blogpost later about this, about all the rejections that they that they priced, of which there were many. So they go back to sivolan and justin con and they like, well, look, if you can't raise money, y, maybe should just go to wy commedator, like we did it. It's great. Pegs, great. And it's still pretty arly at this point. And y s but maybe he'll beable to rise thm money afterward. Speaker 2 T th three, three and a half years into it, y, i think a thing the o box has happened. Speaker 1 Oh, it's two thousand s one and one or two years into it yet, the n it was a, this is now two thousand eight, but wy s started in two thousand six. S, two thousand five, like that, something like that. Speaker 2 Soase ly dro box and read it, effectively have gone through. But there haven't been any other few houters yet. Speaker 1 Jstand t v in justn nobody really knows outside of the valley about them yet. So they go check out wy c. And wy se was actually, i think this was the first start up school that wy s put on effort to evangelize and bring in more applicants as they move to the west coast. ([Time 0:28:51](https://share.snipd.com/snip/8be6e3d1-9e6a-4fef-b56a-d7ee95466e1f)) - Sequoia, Memmo, and the Leak Summary: Mackado is the sequoias liaison with y c, an investor in y c. They're talking about this idea of grit, and how being default alive and scrap scrapping through things is really, you know, it sequoia. So mackado asks p g, well, hey, who in this batch is most like this? And p g says, ah, well, that's the air b and bs over there. Love it. Till mackado goes over, he starts talking to them, and he's smitten as well. I mean, if you remember back to this time, this is beginning. Transcript: Speaker 2 And the very reason why people stopped taking cabs and used uber instead, because it was a casuals experience. I mean, one of the many reasons, but exactly, exactly. Speaker 1 So things start to work. Now, meanwhile, mackado, remember, is the sequoias liaison with y c, an investor in y c. He's a y c one day, and he's talking with p g, and they're talking about this idea of grit, and how being default alive and scrap scrapping through things is really, you know, it sequoia. They believe that that's one of the most important characteristicsof onership as well. And so mackado asks p g, well, hey, who in this batch is is most like this? And p g says, ah, well, that's easy. That's the air b and bs over there. Love it. Love it. Till mackado goes over, he starts talking to them, and he's smitten as well. And this is kind of crazy. I mean, seqoia had just done, if you remember back to this time, this is beginning. ([Time 0:37:44](https://share.snipd.com/snip/38643f91-998f-4afb-a9c9-6351f5cca0ca)) - Then, if it Feels Far Away From the Reality of the Moment, slink Summary: This was potentially a way for people to make some extra money and prevent that from happening. Likewise, still wanted to travel, didn't have the same kind of disposable income to do it,. This was a way to do it much cheaper. And he had looked at homaway and a varbio in the vacation reynels space before. Now i think these are doing something different. Transcript: Speaker 2 It's out there, ya, if it feels far removed from the reality of the moment. Yep. Speaker 1 So to gregg's eternal credit, though, he seized the potential. And he had looked at homaway and a varbio in the vacation reynels space before. Nd says, slink. Now i think these gas are doing something different. And of course, we'll get into this a little bit more as we go but a consequence of the financial crisis and r a p good times and everything that was going on in the world at this point of time Was it was also a housing crisis. And people were having a really hard time paying their rent, paying their mortgages, getting kicked out of their houses. And this was potentially a way for people to make some extra money and prevent that from happening. Likewise, still wanted to travel, didn't have the same kind of disposable income to do it, and this was a way to do it much cheaper. ([Time 0:39:13](https://share.snipd.com/snip/983ed468-34fd-414c-8ff6-34cea1564bfd)) - A Venture Capitalist's Guide to Angel Investing Summary: At the time, think the current, the fund tat they were investing out of, i believe, was a five hundred million dollar fund. They get a small angel allocation of thirty thousand dollars between the three of them in the round. It is just not i didn't demploy enough of the fund's capital to ever have a multiple big enough to get there. Yand here we are. The round is over twenty five per cent of the company. Transcript: Speaker 1 So, like, that's nothing, li nothing. Speaker 2 Ime like, it's nothing, nothing, nothing for sequoa to day, that's still pretty much nothing for them. Speaker 1 At the time, think the current, the fund tat they were investing out of, i believe, was a five hundred million dollar fund. Ah, so what's that? Point one per cent, right? Like the fund? Yes. Speaker 2 The funn thing is that that actually returned that fund, like you never wen yo, so many times over, when you're thinking as a vetra capitalists, and your like, i can't possibly make a Little bet, you know, that's just point one per cent of my fund because like, that can't possibly contribute to returning the fund. It is just not i didn't demploy enough of the fund's capital to ever have a multiple big enough to get there. Yand here we are. Speaker 1 Here we are. So they do five hundred eighty five k. They bring in some investors, alongside a the angel investing collective of keithreboy, kevenharts and jod karem, one of heu two founders. We talked with kevin about this on the ventbright episode. They get a small, they were in angel investing together, they get a small angel allocation of thirty thousand dollars between the three of them in the round. The valuation, though, so that's the dollar size, the structure, though, this much a traditional venture round. The round is over twenty five per cent of the company. ([Time 0:41:42](https://share.snipd.com/snip/cac05277-057b-46b7-80ca-2d9eeefb0277))