The information contained in this document is being provided on a confidential basis to the recipient solely for the purpose of evaluating TheFamily (“TheFamily” or the “Company”). The document is intended for the exclusive use of the persons to whom it is given. By accepting a copy of this document, the recipient agrees, for itself and its related bodies corporate, and each of their directors, officers, employees, agents, representatives and advisers, to maintain the confidentiality of this information. Any reproduction or distribution of this document, in whole or in part, or any disclosure of its contents, or use of any information contained herein for any purpose other than to evaluate an investment in the Company, is prohibited. The information contained in this document or subsequently provided to the recipient whether orally or in writing by, or on behalf of the Company, or any of its respective related bodies corporate, or any of their respective partners, owners, officers, employees, agents, representatives and advisers (the “Parties”) is provided to the recipient on the terms and conditions set out in this notice.

CASE STUDY: AIRBNBBALTHAZAR DE LAVERGNE

AN EASY RIDE ?✓ Built the wrong product first✓ Almost died before P/M Fit✓ Feared competition & regulation

ADVICES ARE NOT GENERICMINDSET IS

✓ Location, team, industry✓ Before - After P/M Fit✓ Create a market - Conquer a market

AN UNUSUAL TEAM✓ 2 DESIGNERS THAT MOVE TO SF✓ NO DESIRE TO START A COMPANY✓ NO TECH

MEETING A PROBLEM✓ Paying their own rent✓ Designer conference in SF✓ Creating airbedandbreakfast.com

Airbedand breakfast screenshot

AND DOING A COMMON MISTAKE

✓ They became friends with their hosts✓ So they created a Roommate app

THE ACTUAL IDEA LOOKED (WAY) TOO

BAD

LAUNCH 3 TIMES✓ SXSW✓ No one sees you, launch again :)✓ Built an actual MVP in the process

MVP✓ 3 clics away✓ Including payment

REAL CLIENTS✓ Not at conferences anymore✓ City by City approach

GO FOR FUNDING✓ 150k at 1.5M pre✓ No deck✓ 8 intros, 2 meetings✓ Techcrunch article✓ Website down

NO GO

CREATE A MARKET✓ It takes time✓ You need the right team✓ You need to cross the chasm✓ You’re not all like this

BECOME A COCKROACH

✓ It’s a NEW market✓ So be creative

AND SELL CEREALS !!

THAT KIND OF ATTITUDE GETS YOU TO YC

✓ People, People, People✓ They get full time

100 FANS✓ More difficult than 1M likes✓ They are going to craft the al l

experience ✓ First users are even more important in a

marketplace

MEETINGEVERYONE

✓ What works ? Photos✓ Why do they host on Airbnb ? Money

MAKE THEM EARN GOOD MONEY

✓ Banks✓ Promote best listings

THINGS THAT DON’T SCALE

✓ Photos✓ Founder did it himself✓ —> 8k photographs

GO RAISE MONEY✓ But difficult times .. ✓ So they became Ramen profitable✓ 600k from Sequoia

“One of the startups from the batch that just started, AirbedAndBreakfast, is in NYC right now meeting their users. (NYC is their biggest market.) I'd recommend meeting them if your schedule allows.I'd been thinking to myself that though these guys were going to do really well, I should introduce them to angels, because VCs would never go for it. But then I thought maybe I should give you more credit. You'll certainly like meeting them. Be sure to ask about how they funded themselves with breakfast cereal.There's no reason this couldn't be as big as Ebay. And this team is the right one to do it.”

“It's also counter-cyclical. They just arrived back from NYC, and when I asked them what was the most significant thing they'd observed, it was how many of their users actually needed to do these rentals to pay their rents.”

“This is after only a few months. I bet you they will get hotels eventually. It will start with small ones. Just wait till all the 10-room pensiones in Rome discover this site. And once it spreads to hotels, where is the point (in size of chain) at which it stops? Once something becomes a big marketplace, you ignore it at your peril.”

EXPAND TO MORE CITIES

✓ Conversion: Craigslist hack✓ Acquisition: PR, Word of mouth✓ No Adwords, that’s after P/M fit

:BE YOUR STARTUP✓ Travel to every city✓ Onboarding meetups✓ Lived one year in a Airbnb

RAISE 7M TO SCALE

◊FEAR COMPETITION✓ After P/M Fit✓ It’s always future competition when you create a market

✓ Rocket Internet launched Wimdu

GO EVEN FASTER TO EUROPE

✓ Scaled to 10 offices in 3months✓ Dramatically changed the company in 1 year

GOVERNMENTS✓ NYC law in 2010✓ Won in court✓ Don’t prepare for this

ATTENTION TO DETAILS✓ The 7 star experience✓ The superhost program✓ The office✓ The design✓ The daily email

STAY FOCUS✓ They could have diversified and didn’t: why ?✓ Will now be the issue to sustain growth

TIME HORIZON✓ Before P/M fit you need to survive —> Week✓ After you get a plan —> Month / year✓ Never think 10 years from now until you’re rock solid

BUILD TRUST✓ Actionable rating✓ Curated content✓ Focus on supply✓ Best Customer Support EVER

INSURANCE ? ✓ Wait if you can✓ Airbnb PR crisis

AND THEIR FUTURE ? ✓ 52% of americans never heard of Airbnb✓ “20% of our business are now stays longer than 30 days”

THANK YOU !