we ended up selling barack obama themed cereal. we call it obama-os, the breakfast of cereal.e also did captain mccain's. that was how we funded the company. today we say we're cereal investors. a twist. >> their scrappiness caught the attention of one of the company's first investors right around the time the economy was crashing. >> we haven't made any money. paul graham said it's an investment nuclear winter and i'm looking for people who won't die. in fact, you guys are like cockroaches. you won't die. the idea literally spread city by city and block by block. >> with air b & b's rapid expansion from 120,000 listings in 2011 to 3 million today, regulators in many cities are struggling to handle the boom in short-term rentals. we're sitting in a beautiful home in new york city. yes. >> which is one of the many cities that's passed laws or regulations to try and restrict air b&b's opportunity to operate here. what is your answer to critics who say it's bad for affordable housing? >> the story of most people in our community is people that are average income who depends on th