How Airbnb Became a $30 Billion Success! - A Case Study for Entrepreneurs

In Case Study #19 Tom Ellsworth, The Biz Doc, takes a look at Airbnb an online community marketplace for people to list, discover, and book accommodations around the world.
Visit the official Valuetainment Store for gear: www.valuetainm...
Airbnb rocketed to a $1B valuation in 2 years after graduating the Y-Combinator incubator and now boasts a $30B valuation (Q1 2017) after raising over $4B.
This success story includes two very interesting and important lessons:
- Get Connected to customers or users early and effectively (don't guess or rely on research reports).
- Find Mentors Early. Bring in advisors that know the space or have functional expertise. (And definitely consider applying to an incubator.)
Book recommendation: Zero to One amzn.to/2neuRKk
Grab your notebook, take notes and join the conversation as Valuetainment brings you case studies with The Biz Doc.
Please subscribe to Valuetainment, comment and share to help educate entrepreneurs from all over the world.
Subscribe: bit.ly/2aPEwD4
About Tom Ellsworth: THOMAS N. ELLSWORTH, is an experienced CEO / COO and entrepreneur. He has been disrupting industries and driving consumer shifts through Venture-backed companies in technology, software, publishing and mobile that have generated exits totaling over $1B. Watch the interview with Patrick Bet-David: • The Man Who Sold 4 Com...
Connect with Tom: / thomasellsworth
About airbnb: Airbnb is an online marketplace and hospitality service, enabling people to lease or rent short-term lodging including vacation rentals, apartment rentals, homestays, hostel beds, or hotel rooms.
Valuetainment- The Best Channel for Entrepreneurs

[@gibransaliba8801]

Moral of the story: try to find a way to get as much feedback as possible. Feedback makes you build a better product and operation which which lead to better sales

[@VALUETAINMENT]

Yep! Thanks, Tom

[@jamesmcginn6291]

Excellent, as always. One point you didn't mention. Paul Graham told them to not worry about growing to a million. Worry about making your first 100 customer extremely happy. This was the insight that made the difference.

[@gibransaliba8801]

And make sure to have a mentor. Mentors are way more valuable than all the PhDs in the business and economics

[@pecenak21]

How does this series keep getting better? I am addicted!

[@VALUETAINMENT]

Research, research, research. Thanks, Tom

[@mrindia1]

Who dislikes this stuff? Unbiased, all facts and very motivational!! Thanks for the quality research! 🙏🏾

[@shaumiksaha]

"Random event success is not a path to sustainable success." 🏆

[@VALUETAINMENT]

You got it! Thanks, Tom

[@NachoTV]

This is a perfect example of how an 💡idea takes a lot of work to actually happen and the passion to make it work.

[@ronysaha3966]

simple. I see a case study video. I like .

[@VALUETAINMENT]

I Research, I Write, I Talk - Thanks, Tom

[@Mr_Blacksmith]

I watch. I learn. I apply. Thanks guys

[@christiankirbyapostol9704]

i likee how you cover the story into fragments and narrated the most important lessons of the airbnb journey, kudos to you.-

[@nobad6134]

These exponential growth case studies are crazy. You can get a revolutionary start up in just 5 years. It’s worth a gamble to invest your all for a few years into a start up if it’s a great idea.

[@joelow63]

be early to get a mrntor or find a plave such as the incubator to start

[@IndianMysticals]

Can you please do a case study on OYO rooms ?

[@theyruinedyoutubeagain]

Whenever I travel somewhere and accommodation is not arranged, I use AirBnb. Never got let down once.

[@aneeshussein]

You come with good stuff every week. Amazing story Airbnb. Thank you.

[@VALUETAINMENT]

Thanks, Tom

[@rafaygardezi724]

Do one on the success of Warren Buffet

[@VALUETAINMENT]

+Rafusa Productions my hero Thanks Tom

[@luismarin7363]

Would you please do a case study for their current situation.

[@absolute-0473]

the real estate business has boomed so much here in the Philippines since airbnb comes in.

[@originalpilot]

Hi Tom, Could you do a case study on Apple please ?

[@TheGrinningSkull]

Thanks Tom! I've been hearing a lot of mentions about "0 to 1" from different sources so I'll be prioritising that for my "to get next" list!

[@VALUETAINMENT]

Buy it and read it! Thanks, Tom

[@Tatumnscottt]

Not Barry Manilow catching a stray bullet like that 😂

[@nikagigashvili]

Great ! Really one of the best channels. Was waiting for Airbnb case, am building the similar business model for a different market. Nice short coverage of their story

[@VALUETAINMENT]

Thanks, Tom

[@sanjitmisra6753]

Hey Patrick, what are your views on Airbnb being a major threat to the hospitality industry? I believe that the hospitality industry is going to need stronger and more aggressive managerial forces for its mere sustainability if ventures on the lines of Airbnb keep hiking up.

[@andrek.1399]

The best business presentation I ever seen in my life. Thank you

[@mitcaru9272]

AirBnB,....What an inspiration and so much to learn from & the only video with sooo many billions spoken ! : P

[@bouchraoukkache1251]

Thank you so much for providing this information. It helps me grow my business

[@birdbrain6946]

Your videos are very valuable! I love it, keep them coming!

[@VALUETAINMENT]

Will do! Thanks, Tom

[@companybroadcast2890]

Build Something 100 People Love, Not Something 1 Million People Kind Of Like

[@Apachedownunder]

Bravo! Tom! You like a drug to us always waiting new Case Study to improve our games! Thanks a million!

[@VALUETAINMENT]

Glad to do it! Thanks, Tom

[@andrejohnson1488]

Very informative indeed.

[@CamiloGomezDev]

I love this channel so much. Awesome video!

[@VALUETAINMENT]

Thanks, Tom

[@20Youand]

Thank you Tom God bless you and the team at VALUETAINMENT Regards Adnan Dad

[@ibsenalamo4471]

always support and back up your money makers.. when u get big make sure u have power players lawyers and connection in Gov . never forget the basics. and KEEp Watching VALUETAIMENT

[@VALUETAINMENT]

There you go!! Thanks, Tom

[@sallyleehealth5733]

I love these videos! keep up the great work tom!

[@VALUETAINMENT]

Will do! Thanks, Tom

[@zeidounmeksi9799]

why a billion dollars company (airbnb in 2k11) would raise more funds? don't they have enough revenues to cover their expenses? thanks

[@monsiid7421]

Thank you for you productive video. This is very helpful information.

[@Opethefoodie]

thank you for airbnb case study. it was really helpful.

[@Tackleberry666]

How can they be worth 28 billion if they have no assets? Cash flow might be in that amount, but total worth?

[@AlexeyPostnoff]

Thanks Tom, very insightful!

[@TheMSBNA]

Hey Pat, hey Biz Doc. Please do a case study on BMW please. The brand is kinda like a so called 'symbol of success and luxury' vehicle here in Asia.

[@VALUETAINMENT]

+TheMSBNA BMW would be cool! Thanks! Tom

[@djfrank5287]

If they had surpassed 10M bookings after 2014, why would the need two additional rounds of funding in 2015/26?

[@godwinprojectmanagement]

Thanks!

[@ediethesalsafreak]

Excellent Tom.

[@VALUETAINMENT]

Thanks, Tom

[@BroVinTV]

hey Tom, good day! could you kindly do a case study on black berry pls, thank you

[@theyruinedyoutubeagain]

I don't think Fred was wrong, I took it more like "it's insanely fucking hard and oh you also need a metric ton of luck", but the mad boyes succeeded despite the odds (and thanks to the Y Combinator mentorship and network).

[@markj2002]

Tom could you look into doing a case study on the payments company, Stripe?

[@VALUETAINMENT]

+Mark J that is an interesting choice, let me think about it. Thanks, Tom

[@SleepingElephant]

Inspiring. Probably read more books about AirBnB.

[@Xtraderr]

Great work guys!

[@VALUETAINMENT]

Thanks, Tom

[@myaparker]

great video

[@ibarramanuel66]

great job !!! great information! !

[@paquitoperez2116]

It would be nice if Airbnb would align with all the major tourisms actors and remove their fees if the trip is cancelled. It is definitely quite unfair to keep the money of a deal that just couldn't go through. So far, Airbnb is not moving anywhere near such a measure. Is money the only thing they understand? It had to come from the U.S.A. for sure...

[@kimfootball]

Great video!!!

[@VALUETAINMENT]

Thanks, Tom

[@prajwalkashyap6397]

please do a video on Walmart

[@gibransaliba8801]

Tom an Patrick. You two are beautiful people inside and out. (No homo) Thanks for this necessary education

[@biglo8757]

BIZ DOC!! GREAT STUDY ..HOW ABOUT KZbin. THEY ARE DESERVING DON'T YOU THINK?ANY WAY, LOVE THE EPISODES !!

[@VALUETAINMENT]

They sold too early for too little. ;) Thanks, Tom

[@luckystrike656]

Why are you sir always have F1 shirts?

[@yudistiraliem135]

Yeah but wait until Amazon purchase Hyatt and make hotel deliveries with prime.

[@Saviiq]

Do a case study on G-Shock Watches and Fruit Loops

[@VALUETAINMENT]

Fruit Loops? Thanks, Tom

[@markofexcellence5209]

She never appreciates when I'm early

[@sentiasatransformasi]

More capital= More responsibility

[@VALUETAINMENT]

Yes! Thanks, Tom

[@jwsingh3385]

case study on Hilton

[@teeneditor3743]

Love to the squad

[@jeanmelanson4896]

Thanks homie

[@giovannimachado214]

Do a Lamborghini case study!

[@VALUETAINMENT]

Many of you are asking about this - conspiracy? Thanks, Tom

[@whiztek9884]

As always gr8 👍🏻👍🏻👍🏻👍🏻

[@cdb5662]

Amazing!

[@singhmaster4]

You always have a great presentation and great content. Good job and keep it up. I have always been passionate about business and marketing as a kid, now I'm 34 and own a business. I admire great businessmen who are rich yet humble. Is there a chance in hell that I will be able to bump into you or Pat sometimes? It's probably far fetched, but i figured it won't kill me to ask. LOL!

[@Nahhmah]

How can I find a Y incubator in NJ/NY?

[@VALUETAINMENT]

+Will Chu Here is a list: m.builtinnyc.com/2016/06/03/accelerators-incubators-nyc

[@joelow63]

pat i just bought how to sell anything to anybody lazt night i read 25 pages can wait to finish it

[@lolapearson6720]

Can you do one for CANDY CRUSH game

[@gibransaliba8801]

You did leave me better than you found me Tom

[@mohammedshibin1893]

From where do you get this much details

[@josephabad2579]

From Philippinnes

[@NachoTV]

Joseph Abad Magandang Gabi 🌙

[@josephabad2579]

Magandang Gabi rin sayo :D

[@piolojamespenas2436]

Joseph Abad hahaha. astig astig

[@aktanp2]

I love this video ...is help me a lottttttttttttttttttttttttttttttttttttttttttttttttt , I want to be billionaire .

[@eddieliucp]

anyone have a bio of patrick's actual work? or his actual work is just making youtube videos..

[@clashgamerxp8507]

get airbnb and download tinder lmao can't believe I didn't think of that before :D tom you're a genuine :)

[@VALUETAINMENT]

You mean "genuine genius" ;) Thanks, Tom

[@clefawntravels]

Awesome Video BRAVO! I didn't think you would do Airbnb..... Can I make a request for DropBox, Twitter or Your own company (Tom Ellsworth) ???????

[@VALUETAINMENT]

+ClEsTa TiOn - Dropbox would be a great one!! Thanks, Tom

[@clefawntravels]

Thanks its good to hear about companies success however its valuable to learn from other companies mistakes such as Blockbuster, Nokia and Myspace ?

[@VALUETAINMENT]

+ClEsTa TiOn I love those suggestions - Thanks! Tom

[@photobyDavidS]

What's with all the F1 shirts? ......

[@DARKilla146]

Checkout the best place to stay in Costa Rica (based on reviews): www.airbnb.com/rooms/15719750

[@iamweird6453]

14:32 loooooooooooooooooooooool

[@VALUETAINMENT]

+THATRANDOMGUY Thanks! Tom

[@ruthc8407]

The city of Santa Monica has enacted laws to clamp down on the ability of people to use airbnb.

[@johnreymoreno9507]

notification squaadd~~

[@marcussamuel8009]

Nice god bless you!!

[@obakengmojela9713]

DAMN!! Gets me every time lmao

[@semones57]

I’m not to sure how great they are, have you been on you tube and seen the videos where ppl using Airbnb come home to their home being torn to hell from ppl having parties or stealing them blind. Not a chance.

[@reymandendaya7017]

early again squad!!!

[@lionfruit2322]

NOTIFICATION SQUAAAAAD!

[@PMCKoala]

Seems like the idea was king and the execution was average at best. A great idea can pick up for poor execution if everyone sees potential.

[@naturalallnaturalwhitepist1789]

Thug Life

[@benpossehl]

Why did they need so much capital? Were their earnings not enough to sustain the business? It seems to me that it wasn't the best idea to let in a bunch of venture capitalists because then they owe their investors a bunch of money

[@VALUETAINMENT]

You don't "owe" venture capitalists - they own a part (%) of the business. It's not a loan - it's high stakes capital roulette. Thanks, Tom

[@praba991ify]

Change you shirt selection boy

[@khunopie9159]

I forgot to score at home :-(

[@kushagrakhandelwal6303]

how about a case study on Samsung?

[@ndziepatrickjoel1943]

Why is this guy is always carying Formula 1 clothes?

[@Telencephelon]

Good video. I think most viewers will agree though: it's a 10 minute story extended to 20 minutes. Try to keep it shorter

[@TheKhashMoney]

fuck yesssss

[@kelpo_boi]

F

[@comviqcompi855]

what happened with david, tell me, tell me now! where is he, did you eat him? you eat him up i know, i know you did!

[@thecamelstory6693]

expensive risky no value

[@bharath_mangalore]

10b haha