The unlikely beginning of Airbnb: A $40 cereal box to $73 billion business
We all know Airbnb as the global giant it is today, but did you know that at one point, its survival depended on cereal boxes?...
Another day, another startup story
Happy Friday young founders,
Today, I want to share a story that’s close to my heart, a story of creativity, grit, and the power of thinking outside the box—literally.
We all know Airbnb as the global giant it is today, but did you know that at one point, its survival depended on cereal boxes?
Let’s dive into this fascinating chapter of Airbnb's startup journey.
The Struggle Before the Breakthrough
In 2008, Airbnb’s founders—Brian Chesky, Joe Gebbia, and Nathan Blecharczyk—were desperate.
Their idea of renting out air mattresses had potential, but they weren’t getting traction.
They could not secure any investment deal, they were running out of money, and their business was on the brink of failure.
Why Cereal?
With their backs against the wall, they needed cash—and fast.
The timing couldn’t have been better: the 2008 U.S. presidential election was in full swing.
Joe Gebbia came up with a quirky, bold idea: why not create limited-edition, election-themed cereal boxes and sell them as collector’s items as a way to fund their startup?.
The idea was as unconventional as it was brilliant.
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They designed two cereals: “Obama O’s—The Breakfast of Change” and “Cap’n McCain’s—A Maverick in Every Bite.”
Hand-assembling the boxes, filling them with generic cereal, and sealing them professionally, they hustled to make it happen.
➡️ They sold 800 boxes at $40 each, bringing in $30,000.
This money wasn’t just a temporary fix. It was essential. It allowed them to keep Airbnb alive, pay off debts, and continue working on their platform.
Opening Doors to Funding
But the cereal boxes did more than just bring in cash.
They caught the attention of investors.
The story of their hustle and creativity spread, showing potential investors that these founders were willing to do whatever it took to make Airbnb succeed.
Shortly after, they secured a meeting with Paul Graham of Y Combinator. Impressed by their tenacity, he accepted Airbnb into the accelerator program.
This was the turning point, leading to the funding and growth that would transform Airbnb into the success it is today.
The Bigger Picture
But this story is about more than just cereal; it’s about the entrepreneurial spirit.
When traditional methods failed, Airbnb’s founders didn’t give up—they pivoted, innovated, and found a creative solution.
This scrappy, resourceful mindset is a key reason why Airbnb eventually grew into the powerhouse we know today.
Key Takeaways for young entrepreneurs:
Think Creatively: Sometimes the best solutions are the most unexpected ones.
Embrace Uncertainty: Don’t be afraid to take risks, even if they seem unconventional.
Persistence Pays Off: Success rarely comes easily or on the first try—keep pushing forward.
Hustle Hard: Sometimes, a wild idea is just what you need to keep going.
Attract Attention: Unique efforts can draw the right people to your business.
The cereal box story is a reminder that great things often have humble beginnings.
So, the next time you’re faced with a seemingly insurmountable challenge, remember the Airbnb founders and their cereal boxes story. The answer might just be sitting on your breakfast table!
Sometimes, the most unusual ideas can save your business and open doors you never imagined.
Until next time, keep innovating and stay inspired!
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THANKS FOR READING!
- Entrepney