What he failed to recognize, he said, was that investors would be seized by a wave of euphoria around the upstarts, and that three billion dollars would end up being a radical underestimation of Airbnb’s eventual worth. ‘You can make lots of little type one mistakes all day long,’ he says. ‘They are not fatal. This was a type two mistake, which is the one mistake you can’t afford to make. Entire funds are made often on one deal. If you pass on it, you are not doing your job as a venture guy.’
