Early-stage Investor | Startup Mentor | Serial Entrepreneur | Scientist | Board Member
Sixteen years ago, Airbnb launched, and today it's worth $94 billion. When they first started, they faced numerous rejections from investors, including this one: "The market opportunity was not large enough." This statement reflects a common, often vague, conclusion some VCs make when they quickly judge a founder and their technology. At the time, Airbnb was raising $150,000 at a $1.5 million valuation. A $150,000 investment would have translated into a 10% ownership stake. The vision they pitched back then is the same vision they operate with today. Every founder knows the sting of rejection emails. The best among us use that rejection to fuel our perseverance and belief in our vision. #FounderLife #Startups #Resilience #venturecapital
Reflecting on Airbnb's journey, it's impressive how it evolved from a modest couchsurfing model into a global rental business. Initially, it seemed like a secure version of couchsurfing, more community-driven than profit-oriented. However, the founders' vision transformed Airbnb into a dynamic platform, revolutionizing travel and accommodation. Recognizing its potential required real talent for sure.
I don't understand why initial investors thought the market was not large enough? Maybe the company wouldn't work, but the market being too small?
Well known phrase like “don’t judge the book by its cover” Having same issues with our product as well, let’s see what’s gonna happen in the next 16 years….
This is the point where the intellect of a founder is challenged Milad. Everyday thousands of ideas are tested, few of them get fair remarks and others like Airbnb get rejected. It's the vision and Founder's belief that made the execution successful!
Remarkable! Our thanks for sharing this important example. 🙏
They saw the so called market that time; but the important is to explore the market in the future!
Founder and Exec Chair at Blaze Bioscience, Inc
1moI was thinking about this blind spot just the other day. Sometimes you are creating a new market and it is, frankly, difficult if not impossible to accurately estimate. Best examples include Thomas Watson of IBM estimating the world only needed 5 super computers. I also had a marketing professor at a certain prestigious business school I went to say putting a camera on a cell phone was a bad idea. Vision rarely fits nicely into someone’s “model”.