The Airbnbs

Paul Graham’s essay The Airbnbs celebrates Airbnb’s IPO by explaining what made the company exceptional during its Y Combinator batch in 2008-2009.

The Defining Trait

The Airbnbs’ defining characteristic was their earnestness and work ethic. Brian Chesky earned the nickname “The Tasmanian Devil” for his tornado-like energy.

“No one ever worked harder during YC than the Airbnbs did.”

The founders took action immediately on feedback, implementing suggestions and developing new ideas between meetings.

The Critical Moment

Airbnb nearly failed. The team had spent a year with no growth and had maxed out multiple credit cards. By late 2008, during the worst recession in decades, they’d agreed to give Y Combinator “one last shot” before abandoning the venture.

What Kept Them Going

Rather than financial incentives, the founders were driven by their direct experience as hosts. When they rented airbeds to convention attendees, both hosts and guests unexpectedly enjoyed the experience.

This glimpse of something genuinely valuable sustained their commitment through hardship.

The Path to Success

During YC, they pursued a focused strategy: targeting New York City, visiting hosts personally, and improving listings with professional photography. By February 2009, they achieved “ramen profitability.”

What kept you going when things were hard? I’d love to hear at persdre@gmail.com.