HE SHOULD HAVE FINISHED HIS SMOOTHIE: How One VC Passed On A 2,500X Return

guy drinking a smoothie

Photo: Flickr/Wootang01

Airbnb, an online marketplace for renting out rooms and homes, is a $2.5 billion company, according to Bloomberg. But in the company’s early days, Airbnb founder and CEO Brian Chesky had a hard time convincing investors to back his company. 

At one point, Chesky was asking for $100,000 in exchange for a 10 per cent stake in the company, Bloomberg’s Adam Satariano reports. But Chesky couldn’t seem to get anyone to bite. In fact, one investor even walked out mid-pitch, leaving his half-finished smoothie behind. 

Today, that investment would be worth roughly $250 million — a 2,500x return. 

Earlier this year, Wedbush Securities analyst Michael Pachter estimated that Airbnb booked 12 million to 15 million nights in 2012. He thinks that could increase to 100 million nights, whereby Airbnb could generate $1 billion a year in revenues.

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