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Sounded like before/during YC it was still a question. From what I read it wasn't obvious to YC either, but you let them in in any case? The fact that they had to sell cereal to keep going? BTW, just read this post from 2011: http://www.paulgraham.com/airbnb.html Fascinating stuff :)
We didn't like the idea, but (fortunately for us) we decide mostly based on the founders. So this was not one of the ones we had to talk about after the interview. We were all at yes immediately.
