Enter your email business to download and customize this presentation for free
Startups can learn several lessons from Airbnb's experience with investor pitching. Firstly, it's crucial to have realistic and achievable goals. Airbnb initially faced rejection due to their overly optimistic assumption of capturing 15% of their total addressable market. Secondly, perseverance is key. Despite the initial rejections, Airbnb continued to pitch and eventually secured funding. Lastly, startups should be prepared for adjustments in their valuation. Airbnb's valuation was dramatically reduced, reflecting a more realistic market capture of 2%.
Question was asked on:
In 2008, Airbnb was a startup trying to raise money from investors across Silicon Valley. The company estimated it could grow to $2 billion in revenue in three years by capturing 15% of their total addressable market, or TAM. Airbnb was rejected by nearly all the investors it pitched because its assumption that it could capture 15% of its TAM was too optimistic. After an initial seed round and some promising years of growth, in 2011 Airbnb ended up raising $100M at a $1.3B valuation — a dramatically smaller valuation that assumed the company could capture 2% of its TAM.
Asked on the following presentation:
How do you take your product management to the next level? Due to popular demand, we've expanded our Product Development Toolkit to include more tools...
Download 6 out of 21 slides
Enter your email business to download and customize this presentation for free
Download full presentation
Quarterly
