Airbnb, 2008

How did Airbnb survive by selling cereal?

The short answer

Broke in 2008, the Airbnb founders designed election-themed cereal boxes, Obama O's and Cap'n McCain's, and sold them for $40 each. It raised about $30,000 and kept the company alive.

The situation

Your travel startup has maxed out several credit cards. Investors keep saying no. The US presidential election is all anyone talks about.

The options on the table

  • Design election-themed cereal boxes and sell them as collectiblesWhat they did
  • Shut it down and get jobs
  • Borrow from family to buy six more months
  • Switch to a cheaper idea

What happened

The founders designed "Obama O's" and "Cap'n McCain's" cereal boxes and sold them for $40 each. It raised about $30,000 and kept Airbnb alive.

Sources: Sam Sawyer, Mixergy

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