The founders handcrafted, numbered and sold each limited edition cereal boxes for $40 apiece. Riding on the election fever, Chesky and Gebbia thought of creating presidential-themed breakfast cereals – The Obama O’s The Breakfast of Change and Captain McCain’s A Maverick in Every Bite. Since the “bed” part of “bed and breakfast” was not getting favorable results, Chesky thought of focusing on the breakfast side of the equation. In the context of the Airbnb startup story, generating revenue and finding investors came from an unusual source. How to be a Cereal Entrepreneur According to the Airbnb Founder Neck-deep in debt, Airbnb was in dire need for funding. This part of the Airbnb startup story was what Airbnb founder Brian Chesky called, The Trough of Sorrows. While the team was able to get media attention, user traction did not follow. Secondly, learning from experience that room shortage meant people looking for alternative accommodation options, the team launched again during the 2008 Democratic National Convention in Denver, with dismal results. One was during the SXSW 2008 Conference where the website received only two bookings, one of which is Chesky. The Airbnb founder, along with Gebbia and Blecharczyk, staged various attempts to launch the venture since 2008. With no other alternatives, the team went back to Airbed and Breakfast. Four weeks into the project, the founders realized that was already existing. Chesky and Gebbia then tinkered with the concept of roommate matching services. However, thinking that the idea may not fly, the Airbnb founder shelved Airbnb.
Joe Gebbia’s former roommate, Nathan Blecharczyk joined the team as one of the Airbnb founder and developed a business model around the idea. When three people showed up at their doorstep, Chesky and Gebbia thought that they may have stumbled upon a big idea. Immediately, Chesky and Gebbia launched a simple website –, and offered airbeds and a homemade breakfast for $80 each night. The duo rented out their apartment loft to designers looking for a place to stay. Both unemployed and with their San Francisco apartment rent due in a few weeks, the pair saw this as an opportunity. With the upcoming Industrial Designers’ Conference in San Francisco, there was a shortage of hotel rooms and accommodations. Back in October 2007, the to-be Airbnb founder and his roommate Joe Gebbia were looking for means to pull in extra cash. The first Airbnb startup story revolves around airbeds and rents. Airbeds and Rents: The Airbnb Startup Story
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