Subject: Airbnb • Hacker News Board

Re: Subject: Airbnb

#61

Post by kragen » Thu, Mar 17, 2011, 6:59 PM UTC

thesis wrote: post #14

luckystrike wrote: post #11

If someone still has any doubts about the value of YC, they should read this email exchange. PG is pushing for the startup as if it was his own. He genuinely wanted them (and also the VC firm) to succeed. Great stuff.

What? He was invested in them. Do you think he wants to see them crash and burn?

Sometimes it can be advantageous for an investor to have a company crash and burn. If the company's main assets are likely to survive such an event without being destroyed, but be undervalued by people not familiar with the company, then an alert investor can buy those assets out of bankruptcy at a time when the people most invested in the company (founders, employees) have run out of money.

More prosaically, if you can delay the company's getting to break-even, they'll need more rounds of investment, which mean you can buy more of the company.

And then, of course, there are personal feuds. Remember what happened to Scout Electromedia? Their shutdown probably had as much to do with investors being pissed off about being ignored as with any actual rational assessment of their future prospects.

Re: Subject: Airbnb

#62

Post by robobenjie » Thu, Mar 17, 2011, 7:00 PM UTC

randall wrote: post #47

quickpost wrote: post #36

Fascinating conversation. Thanks for giving insight into how these deals work... >ABNB reminds me of Etsy in that it facilitates real commerce in a marketplace model directly between two people. Interestingly enough, I still tend to side with Fred's assessment of AirBnB's future. All my experiences with it as a user have been too unreliable to expect that it can scale to truly massive usability. Selling your old guit…

I just did my first AirBNB experience (actually am still in the middle of it) and I can say that it's actually been surprisingly smooth. It's almost like a paid way to make friends. The hosts who I'm staying with are so cool, and since I'm pretty public online, it was easy for them to feel comfortable with me staying at their pad. They've set it up as much like a hotel as I could ask for. It's really great, and it's…

Aww shucks, Thanks, Randall. We really enjoy hosting, and it seems like an even better deal for us (we get paid to make friends).

About the only downside Iv'e experienced so far is that I have to wash sheets all the time (most people stay with us for 2-3 days and since we now have between 70%-100% occupancy thats a lot of sheet washing.

I'm also about to go to Paris and the value proposition of airbnb there is even better (try hipmunk's hotel search in Paris). We are staying in a private entire apartment on the seine with a view of the eiffel tower for about $130 a night.

Re: Subject: Airbnb

#63

Post by charlief » Thu, Mar 17, 2011, 7:01 PM UTC

Fred Wilson tweeted: Reading the email discussion between paul graham and me with 20/20 hindsght is both useful and painful

http://twitter.com/fredwilson/status/48456993614200832

Re: Subject: Airbnb

#64

Post by [deleted] » Thu, Mar 17, 2011, 7:04 PM UTC

bconway wrote: post #35

lurker19 wrote: post #30

Wow. I did not get the pun in AirBnB until I saw it spellers out widhelm he lowercase b in airbed. The capital B is either a branding miss or an intentional branding effort to look more upscale than Airbed.

Based on previous discussions, I think it's done intentionally to reflect a pivot (away from airbeds).

[deleted]

Re: Subject: Airbnb

#65

Post by ivankirigin » Thu, Mar 17, 2011, 7:08 PM UTC

  It just seemed a very good sign to me that these guys were actually
  on the ground in NYC hunting down (and understanding) their users.

That's a funny comment from paul because he was the one to tell them to go to NYC. That they went is to their credit, but still. I think of this sometimes with the pitch coaching for demo day. How many investors think "that's a great way to phrase that" when watching a presentation and what they are actually hearing is PG? When you've seen a few of them, it is quite stunning.

I don't mean this in a negative way. It actually is just evidence that paul graham is a badass.

Re: Subject: Airbnb

#66

Post by jonpaul » Thu, Mar 17, 2011, 7:11 PM UTC

d0m wrote: post #18

I wish PG could back up my idea like that. What if.. I simply signed Paul Graham? : )

I realize that you're joking, but I think it's really important to point out that Paul was backing the team more than the idea. At least that's how I read it.

Team > Idea.

Re: Subject: Airbnb

#67

Post by sinzone » Thu, Mar 17, 2011, 7:13 PM UTC

ivankirigin wrote: post #65

It just seemed a very good sign to me that these guys were actually on the ground in NYC hunting down (and understanding) their users. That's a funny comment from paul because he was the one to tell them to go to NYC. That they went is to their credit, but still. I think of this sometimes with the pitch coaching for demo day. How many investors think "that's a great way to phrase that" when watching a presentation an…

He told them, but they did it.

Re: Subject: Airbnb

#68

Post by metachris » Thu, Mar 17, 2011, 7:13 PM UTC

jrockway wrote: post #38

NickPollard wrote: post #33

Earlier quoted context omitted.

Is it terse or is it just concise? So many 'business' people think that long waffling sentences seem clever and impressive. Nothing is further from the truth.

This is neither terse nor concise. Terse and concise means you write what you mean. When the VC writes, "we are still in the data-gathering phase", he really means "I see what you are saying, but my gut says no right now. I may contact you in the future when I know more." This is longer, but it actually means something. Instead of saying that he needs more data in order to make a decision, he's said that he needs mor…

You can call it meaningless, but people in the business do understand exactly how it is meant. The way he phrased it just sounds a lot more polite.

Re: Subject: Airbnb

#69

Post by andrewljohnson » Thu, Mar 17, 2011, 7:14 PM UTC

siddhant wrote: post #5

I think this is the post that best gives an idea of "Why should you do YC".

And this is the post that tells you why you should read HN too.

Re: Subject: Airbnb

#70

Post by thedaveoflife » Thu, Mar 17, 2011, 7:22 PM UTC

joshcrews wrote: post #57

randall wrote: post #47

Earlier quoted context omitted.

I just did my first AirBNB experience (actually am still in the middle of it) and I can say that it's actually been surprisingly smooth. It's almost like a paid way to make friends. The hosts who I'm staying with are so cool, and since I'm pretty public online, it was easy for them to feel comfortable with me staying at their pad. They've set it up as much like a hotel as I could ask for. It's really great, and it's…

I like Airbnb. I've hosted 8ish times and stayed with people once. Why I think the people on Airbnb are 'cool' is that its a small population that has a lot in common (young or young-at-heart, singles and couples without kids, internet natives, own a macbook, would love to hitchhike Europe while submitting correspond reports for the NYTimes). As it grows, I'm worried that everyone's not going to find everyone else 'c…

Good question but I think they will always have the 'cool' crowd simply because allowing a weary stanger to stay in your apartment is inherently a cool thing to do.

also money talks in this case. As has been brought up elsewhere in this thread, there is a huge market here for unused space that AirBnB is exploiting. Even cool people like saving/making money.