Airbnb

Brian Chesky and Joe Gebbia were broke San Francisco roommates in 2008 who couldn't afford rent. When a design conference came to town and all hotels were full, they bought three air mattresses and rented out space in their apartment to conference attendees for $80 a night. They called it "Air Bed and Breakfast." All three spots filled within hours. The most disruptive hospitality company in history started with a $80 transaction and a desperate need to pay rent.

Unable to raise venture capital, Chesky and Gebbia created two novelty breakfast cereals — "Obama O's" and "Cap'n McCain's" — timed to the 2008 presidential election. They sold 1,000 boxes at $40 each, raising $30,000. Paul Graham of Y Combinator later said the cereal hustle was the reason he invested: "If you can convince people to pay $40 for a $4 box of cereal, you can probably convince people to stay in strangers' homes."

By 2011, Airbnb had one million nights booked. Marriott, Hilton, and Hyatt began lobbying governments to regulate or ban the platform. More than 30 cities introduced Airbnb-specific legislation. The traditional hotel industry, which had dismissed Airbnb as a novelty, was now fighting for its life against a company with no real estate and no hotel rooms.

In February 2020, Airbnb's bookings were growing 30% year-over-year. By April, they had fallen 80%. The company laid off 1,900 employees — 25% of its workforce. Nine months later, Airbnb went public at $68 per share. The stock doubled on the first day, valuing the company at over $100 billion. It was the largest U.S. IPO of 2020 — a company that had nearly ceased to exist six months earlier.

By 2025, Airbnb had become consistently profitable — a rarity among the pandemic-era unicorns. The platform listed over 8 million homes across 220 countries and regions. Airbnb began expanding aggressively into "Experiences" — guided tours, classes, and activities hosted by locals — positioning itself as a full travel platform rather than just accommodation. Co-founder Brian Chesky, who had stayed on as CEO despite enormous pressure to step back, described the post-pandemic Airbnb as the company they always intended to build.