Airbnb began in 2008 by solving a problem of where to stay when visiting a new city. It has since grown to become one of the largest hospitality providers globally through key factors like building a trusted community, offering an innovative value proposition focused on authentic local experiences, and the founders' continuous entrepreneurial innovation. Airbnb grew through creative disruption of the industry, open innovation using community ideas, and relentless service innovation while keeping its core peer-to-peer model. Strategic international expansion, securing funding at key stages, and well-timed innovations fueled Airbnb's journey from a small startup to a global unicorn company valued at over $25 billion.

2. P r e s e n t a t i o n O u t l i n e
1. Founding Story
2. How it works
3. The Key Factors for Growth
4. Innovation for Growth
5. Internationalisation for Growth
6. Financing for Growth
7. Future & Recommendations

3. 1 | Founding Story

4. Airbnb began by solving a problem.

5. Existence
Growth Journey Snapshot
•Rent out home with
air mattress
•Creates a simple
website
•Realises business
potential
2008 2014
Survival Growth Consolidation Maturity
•Invites co-founder
to build website
•Launches
unsuccessfully at
SXSW
•Innovates and sells
cereal to promote
Airbnb
•Gets first funding
from Y combinator
•Partners with
professional
photographers
•Doubles revenue
with in weeks
•Raises $60,000
from Squoia
•Expands
internationally
•Grows rapidly
internationally
•Faces many Legal
and financial
battles
•Security scandal
•Valued at $1Bn
•Secures multiple
top tier investors
•Rebrands to ‘belo’
logo and ‘Belong
anywhere’ slogan
•Rises to larges
hospitality service
provider in the
world
•Controversies and
legal issues
continues

6. 2 | How it works

9. 2 | Key Factors for Growth

10. Community Value Proposition Entrepreneurial Innovation
Key Growth Factors
The business design,
resulting in a trusted, safe
and global marketplace
through a engagement
community
A compelling, experience
based and innovative
value proposition
throughout growth journey
for both host and visitors
Continuous business
innovation, adapting to
changing environment by
the founders

11. Community
| Strong community of peer-to-peer reviewed hosts
and guests. |
| Host and guest relationship through rating, review,
profile picture and linking with one’s Facebook and
LinkedIn accounts. |
| Partnerships with local freelance photographers. |
| Accurate address and nearby location - unwritten
code of hospitality. |
Business design that generate trust and safety

12. Value Proposition
| Persuade hosts to offer unique real sense of local
experiences. |
| Create connection with people and cultures with
authentic travel experience. |
| Airbnb properties are likely to be located in
residential areas where guest can sense local
living. |
“Don’t go there, live there”

13. Entrepreneurial Innovation
| Innovation |
| Adapting to changing environment |
| Personalization services |
| Partner with local business |
Innovative attributes of the founders

14. The Firm :
Community
The Strategy:
Value Proposition
The Entrepreneur:
Entrepreneurial Innovation
Predictive Model
(Adapted from Storey, 1994)
Airbnb’s growth strategy
External Environment

15. 3 | Innovation for Growth

16. Creative Disruption Open Innovation Service Innovation
Key Innovations for Growth
The unchanged core
business model of peer-
to-peer accommodation
with a evolving value
proposition
Continuously and
successfully using the
community to innovate
service in collaboration
with the community
While the core business
model remained the
same, significant growth is
attributed to relentless
service innovation

17. Existence
Growth Journey Snapshot - Innovation
2008 2014
Survival Growth Consolidation Maturity
•Innovative ‘new to
the world idea’
•Builds own site for
a ‘personal touch’
•Launces new
website with
cofounder
•‘Offline’ fundraiser –
by celling novel
cereal
•Joined Paul
Graham’s Y
Combinator
•Rebrands to AirBnb
•Partners with
professional
photographers
•Famous growth
‘hack’ of craigslist
platform
•Bottom up approach
to service innovation
•Photography
program
•‘Offline’ fundraiser –
by celling novel
cereal
•Integrated Bottom
up approach to all
business aspects
•Rebranding to fit
shifting needs
•Introduced social
connections to
increase safety and
trust
•Introduced wish lists

18. 4 | Internationalisation for Growth

19. Existence
2008 2014
Existence
2008 2014
SurvivalExistence
2008 2014
Survival GrowthExistence
2008 2014
Survival Growth ConsolidationExistence
2008 2014
Survival Growth Consolidation Maturity

20. 5 | Funding for Growth

22. Existence
Growth Journey Snapshot – Finance
2008 2014
Survival Growth Consolidation Maturity
•$80 from first
guests
•Personal funds
•Personal loans
from family &
friends
•Enters Y-
combinator, raises
$20,000
•Raises $30,000
from offline
campaign
•$200 pm not
growing
•Rejected by
famous startup
investor Fred
Wilson
•See first growth
after ‘Photography’
change
•Raises $600,000
from Sequoia
•Secure up to $7.2
million from various
investors
•Raises up to $112
million from various
venture capitalist
before profits come
in
•10 million guests,
550,000 listings,
valuating at $10
billion

23. 6 | Future & Recommendations

24. Growth Strategy The Sharing Economy Funding & Timing
The take away…
The unchanged core
business model of peer-
to-peer accommodation
with a evolving value
proposition
Continuously and
successfully using the
community to innovate
service in collaboration
with the community
While innovation and
growth strategies are
highlighted, it is important
to acknowledge the role
timing and funding played

25. thank you | questions

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