Started by 3 guys – all under the age of 35 – who started by simply renting 3 air mattresses in their apartment. It was a lousy flop for a time after that, but they had a dream and not much of a plan to change the way travelers and tourist experience new places.

Brian, Nathan and Joe originally rented 3 mattresses to designers who came into San Francisco for a design conference. They had tried to recruit residents in San Fran to do the same (rent home space to travelers), but the idea seemed premature. The website they made wasn’t attracting the traffic they needed to stay sustainable. There was a taboo about letting strangers enter and stay overnight in someone’s home. After the conference and the season of Obama’s presidential campaign they trio were making 200 bucks a month from the”network” they set up from the website.

They entered a entrepreneurial incubator and  the advice they got was priceless, and probably ultimately set Airbnb up for eminent success. They were advised travel to where demand was greatest and interview the renters and rentees. packed with a professional camera they asked room renters questions about the experience and advice, critique and  comments. All of which we quickly rolled out after each interview.

They made swift changes to the payment process, the way rooms were presented on the site (people were able to hire a professional photographer for free to help market there room), and they enhanced the marketing through email blasts and social media efforts.

I am enthused that Airbnb just recently won 2014 Inc.’s Company of the Year.

Revolution to Blood Tests

Elizabeth Holmes is not willing to just create an incremental change to a product or industry – not in the least. This Stanford sophomore drop out started the company at 19. She approached her professor (of only 1 year) and asked him to join her in starting Theranos. He recounted that he was extremely hesitant in the beginning because Elizabeth did not have a degree, but he had a great gut instinct about her passion and determination to get this company started.

The basis of the company is the ability to run 100’s of blood tests without the need to draw large amounts of blood. Theranos gives a little prick on the finger and fills a “nanotainer,” which is about 100x less blood than the traditional blood test methods. Less blood means no needles and virtually no pain. This can be supremely beneficial to patients who require many tests in one week, as well as, elderly people or children. In addition, these tests are much cheaper than the current alternative, which allow for almost zero switching costs from the traditional method to the Theranos method.

I am very fond of one specific detail that  is unique to the Theranos journey. Theranos has developed relationships with drug manufactures and uses its technology to offer services to these large companies in order to earn revenue so that it can support the long term vision of blood testing for the consumer while they are still in development.

Another key to Elizabeth’s success is the support of her parents throughout this journey. Her parents have not only been early seed investors, but have encouraged her to pursue her passion in order to find meaning in life.

In the words of Theranos, “One tiny drop changes everything.”