The Airbnb pitch deck is a presentation the company used to pitch its business to potential investors. It was created in 2009 when Airbnb was just a few years old and looking to raise funding to help grow its business. The pitch deck was designed to be a compelling and persuasive presentation that would convince investors to invest in the company.

Download the deck here

What’s so special about the AirBnB pitch deck?

The deck included several key elements, including an overview of the company's business model, its growth potential, and its unique value proposition. It also included information about the company's target market, its financial projections, and its competitors.

One of the key strengths of the Airbnb pitch deck was its focus on the company's unique value proposition. Airbnb's value proposition was that it offered a more affordable and authentic alternative to traditional hotels. This was a compelling message for potential investors, as it showed that the company had a clear and differentiated offering that would help it stand out in a crowded market.

Another strength of the Airbnb pitch deck was its focus on the company's growth potential. The deck included detailed financial projections that showed how the company planned to grow its revenue and expand into new markets. This helped to convince investors that Airbnb was a good investment opportunity.

Overall, the Airbnb pitch deck was a key tool in the company's early success. It effectively communicated the company's value proposition and growth potential, which helped to attract the investment needed to help Airbnb grow into the successful company it is today.

How is the pitch deck used today?

The Airbnb pitch deck is often used in business schools as a case study or example of a successful pitch. In business schools, students often learn about the process of raising funding and the importance of creating a compelling pitch to attract investors. The Airbnb pitch deck is often used as a model of a well-crafted pitch that effectively communicates a company's value proposition and growth potential.

In these business school settings, students may be asked to analyze the pitch deck and identify its key strengths and weaknesses. They may also be asked to compare the deck to other pitch decks from similar companies, and to discuss how the Airbnb pitch helped the company to raise funding and grow its business.

Overall, the Airbnb pitch deck is an important tool for teaching students about the process of raising funding and the importance of creating a compelling pitch to attract investors. It is often used in business schools as an example of a successful pitch that effectively communicated a company's value proposition and growth potential.

Let’s walk through the pitch deck slide by slide

The introduction

The first slide in Airbnb's pitch deck is simple, but it provides clear and concise information that is easy for the audience to understand. The sentence "Book rooms with locals, not hotels" effectively summarizes the company's offering and lets the audience quickly comprehend what Airbnb does.

One important aspect of this slide is its brevity. During a presentation, the audience may only have a few seconds to glance at each slide, so it's important to keep the text as short as possible. This is especially true for slides that will be shown briefly, like the introductory slide.

Another important consideration is the use of jargon. Some startup founders may be tempted to include industry-specific lingo in their presentations, but this can be risky. Using lingo can make you sound knowledgeable and competent, but it can also confuse or alienate members of the audience who are not familiar with the terminology. In a fundraising pitch deck, it's important to make the presentation as clear and accessible as possible, so it's best to avoid using jargon unless it is absolutely necessary.

Overall, the first slide in Airbnb's pitch deck is an effective example of how to present key information in a concise and easily understandable way. By focusing on the company's offering and avoiding industry lingo, the slide helps the audience quickly grasp what Airbnb does and why it's worth investing in.

The problem statement

The second slide in Airbnb's pitch deck focuses on the problem that the company is trying to solve. Using short, concise sentences and bold text to emphasize key words, the slide effectively communicates the problem and makes it easy for the audience to understand. By using front-loaded sentences and placing important keywords at the beginning of the sentences, the slide is also easy to skim-read and helps the audience quickly grasp the main points. Overall, this slide is an effective way to introduce the problem that Airbnb is addressing and set the stage for the rest of the presentation.

How AirBnB solves the problem they identified

The fourth slide in Airbnb's pitch deck presents the company's target market and its growth potential. This slide is effective for several reasons:

It uses visual elements, such as maps and graphs, to make the information more engaging and easy to understand.

It provides detailed information about the target market, including demographics, geographic location, and key growth areas.

It includes financial projections that show the potential for revenue growth, highlighting the strong potential for the company to expand and become profitable.

Overall, this slide is an effective way to demonstrate the strength of Airbnb's business model and its potential for growth. By providing detailed information about the target market and financial projections, the slide helps to convince investors that the company is a good investment opportunity.

Market Validation

The fourth slide in Airbnb's pitch deck presents data that supports the company's claim that its target market exists. This slide is effective for several reasons:

It uses data from similar services, such as temporary housing listings on Craigslist and couchsurfing.com users, to show that the market exists.

It presents this data in an engaging and easy-to-understand way, using visual elements such as maps and graphs.

It provides detailed information about the target market, including demographics, geographic location, and key growth areas.

However, this slide may be less effective in convincing investors in 2023 than it was in the past. In order to get investors excited, it would be better to showcase numbers that are directly related to the solution that the company is building and to provide evidence of validation experiments that show the company is on the right track to achieving product-market fit. By focusing on these more concrete and directly relevant metrics, the slide can be more effective in convincing the audience that Airbnb is a good investment opportunity.

Market size

The fifth slide in Airbnb's pitch deck presents the potential size of the market that the company is targeting. This slide is effective for several reasons:

It demonstrates that there is a large market filled with potential customers who are already spending money on travel.

It shows that by capturing just 15% of the budget and online travel market, Airbnb's potential share of the serviceable market stands at 84 million trips per year.

It provides sources for the basic numbers, which is a good practice.

However, the key figure of 15% may come across as arbitrary. In order to effectively convey the message that the market is huge, the company may need to defend this figure well and provide additional evidence to support its claim. Overall, this slide is an effective way to show the potential size of the market and convince investors of the growth potential of Airbnb's business.

Their product

The sixth slide in Airbnb's pitch deck provides a brief overview of the product. This slide is effective in providing a general overview of the product, but it may be more effective to include more detailed information about the product's features and how it will generate revenue.

One potential issue with this slide is that the screenshots are difficult to read. Instead of using static images, it may be better to use a video to demonstrate the product and its features. By providing a more interactive and engaging presentation of the product, the slide can be more effective in convincing investors of its value and potential for success.

Some key points that could be included on this slide are:

A brief description of the product and how it works

Examples of key features that make the product unique and valuable

A video that demonstrates the product and its features

Information about how the product will generate revenue and contribute to the overall success of the company.

The AirBnB business model

The seventh slide in Airbnb's pitch deck discusses how the business will make money. In Airbnb's case, the key points of this slide are:

Airbnb plans to make money by charging a 10% commission on bookings.

Using market size projections, the company calculates that this revenue model could generate $2.1 billion per year.

This number is important because it allows investors to make a rough estimate of the potential value of the company if it is successful.

What is elegant about this slide is that the $2.1 billion target is reached logically by taking a cut of each reasonably priced transaction. By charging a 10% commission on bookings, Airbnb can achieve its target revenue even with relatively low-priced transactions. For example, if a room is priced at $100 per night, Airbnb would generate a commission of $10, which would contribute to the company's target revenue of $2.1 billion. This approach is logical and straightforward, which makes it easy for investors to understand and appreciate the potential of Airbnb's business model.

The Adoption strategy

The eighth slide in Airbnb's pitch deck discusses how the company plans to attract new users. In their case, they plan to use a variety of strategies to attract new users, including:

• Marketing for events
• Partnerships
• Cross-posting listings on Craigslist

This strategy leverages Craigslist's established user base to drive traffic to Airbnb's website, which helped the company achieve early stage growth. In retrospect, the Craigslist dual-posting strategy turned out to be a key factor in Airbnb's success.

While the exact details of the strategy may not be as important as the overall approach, it is crucial to convince investors that the company has a realistic and actionable plan for attracting new users. This plan should be scalable and cost-effective, as early stage startups often have limited marketing budgets. By presenting a clear and compelling plan for user acquisition, the pitch deck can be more effective in convincing investors to invest in the company.

Competitor analysis

The ninth slide in Airbnb's pitch deck addresses the market competition issue. In this slide, Airbnb asserts that while competition exists, the company is sufficiently differentiated to carve out its niche in the market.

One mistake that startups often make is to claim that they have no competition. This may be true in some cases, but investors will often conclude that there simply is no need for the product or service that the startup is offering. It is important to acknowledge that there may be competition in the market, but to also demonstrate how the company is sufficiently differentiated to succeed.

In Airbnb's case, the company claims that it is the cheapest online solution in the market. To support this claim, the slide lists the company's key competitive advantages, including:

• Low prices
• Large selection of listings
• User-friendly platform

By highlighting these points and using bullet points, the pitch deck is able to demonstrate how Airbnb is well-positioned to compete in the market and to succeed in its target market.

Their competitive advantage

Slide 10 in the Airbnb pitch deck is packed with valuable information, highlighting six of the company's competitive advantages. Be sure to spend enough time discussing each advantage and put them in context to showcase their value fully. For example, the monetary host incentive is a major advantage over couchsurfing.com, while the "list once" feature gives Airbnb an edge over Craigslist. If you find yourself short on time, focus on your top two or three advantages to make the most impact.

Team advantage

In a few sentences each, the founders' profiles aim to give investors a sense of whether the team has the necessary skills and experience to achieve their goals.

To help investors quickly assess the founding team's capabilities, this slide provides brief bios of each founder. In the case of many tech startups, investors are interested in seeing a well-rounded team with expertise in technology, marketing, and the company's specific domain.

Press coverage

Slide 10 in the Airbnb pitch deck is packed with information, highlighting six of the company's competitive advantages. If you plan to include this slide in your own presentation, make sure to allocate sufficient time to discuss each point, or focus on your top two or three advantages if time is limited. To make the most of this slide, it can be helpful to put each advantage in the context of a specific competitor. For example, the monetary host incentive is an advantage over couchsurfing.com, while list once is an advantage over Craigslist.

User testimonials

User testimonials are a valuable form of validation for your brand and product. Not only do they reinforce your reputation and quality, but they also showcase something else that is crucial for early-stage startups: founders who have interacted with their customers. This helps founders understand the needs and problems of their target market and make the necessary adjustments to find product-market fit. By featuring pictures, names, and locations in your testimonials, you can add an authentic touch that aligns with Airbnb's core value of "connecting people and cultures." This not only adds credibility to the quotes, but also serves as a nice bonus for the slide.

Financials - the investment ask

The final slide in the Airbnb pitch deck focuses on the financial proposition, which is a smart way to wrap up the presentation. After highlighting the company's strengths and potential, the founders make a clear and compelling ask of the investors. The target amount for the round is explicitly stated, as is the expected revenue for the year ahead. The slide also includes two key milestones and a timeline, showing the founders' dedication to achieving them:

• 80,000 booked trips within 12 months
• $2 million in revenue within 12 months

This carefully planned approach is sure to impress potential investors and demonstrate the founders' confidence in their ability to achieve their goals. It's a powerful way to end the pitch deck and make a lasting impression on investors.

Conclusion

Airbnb's pitch deck effectively achieved its purpose of securing $600k in funding from a major investment fund in 2009. The founders successfully convinced investors of the massive market opportunity and their ability to capitalize on it.

It's worth noting the way in which the founders framed their request for funding. By presenting it as an investment opportunity, they shifted the focus away from their own needs and onto the potential benefits for the investors. This choice of words showcases the founders' understanding of their audience and their ability to craft a compelling narrative. It's a smart tactic that contributed to the success of the pitch.