David Rosenthal: evaluation

Transcript context

…It's also a great way to use their actual talents. As designers, they didn't have to outsource the creation of the art for the boxes, so therefore there was more margin available for them. I always think that a good lesson for entrepreneurs, in general, is what is the thing that you yourself can do and not pay yourself anything and you don't have to pay the labor. It's 100% profitable. For our business here at Acquired, we podcast. We don’t have to pay for any podcasters. Talking to the internet? There is though the other reason I decided to include the Obama O’s and Cap’n McCain’s story is it’s actually what gets them into YC. Characteristically, Brian and Joe—as you can imagine as the story goes along here—missed the deadline to apply, and Seibel has to lobby PG and say these guys missed the deadline, but can you just give him an interview anyway? I vouch for them, they're good. Brian and Joe convince Nate to fly back from Boston, pretend that he's still part of the team to drive down the Mountain View, and have the YC interview. He shows up. They're getting ready to drive down. The story goes—as they're leaving—Joe grabs a box of Obama O’s and a box of Cap'n McCain's to give to Paul Graham. Apparently, Nate is like, what are you doing? You look ridiculous. Cereal? Come on. They go, they do the interview, and PG doesn't get it. He's like, people actually are doing this? Staying on each other's couches? They're like, well yeah, people are doing it, but not that many people. It doesn't go super well. After they leave the interview, Joe realizes he's forgotten to give Paul the cereal boxes. He runs back in and gives Paul the cereal boxes. This is how the story goes as chronicled in The Upstarts. He gives Paul the cereal boxes and Paul was like, what are these? Joe tells him the story of how they've stayed alive. Of course, what is one thing that PG values above all else? It's survivorship, grit, and default alive—being a cockroach as he would come to call them. He says, wow, okay. You guys are going to stay default alive. I don't know about this whole thing, but you're in. They get into YC. They start in the winter 2009 batch. As Paul spends more time with them, he comes to really like these guys. Famously, he gives them advice. He says, where is stuff happening right now? We've got some bookings in New York. He says go to New York. He famously sends the—he starts calling them the Airbnb’s. During YC, they changed the name to Airbnb from AirBed and Breakfast. They get to New York. They figure out that photos are important. They figure out that having a smooth payment experience is important because bringing a bunch of cash and giving it to your host is pretty awkward. The very reason why people stopped taking cabs and used Uber instead because it was a cashless experience. I mean, one of the many reasons.…

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