The second blog post (linked above/below) is the problem. Before that, I thought this was a major crisis, but could be survived. After that (and the FT article), I really think they will be incredibly lucky to survive, much less continue their growth trajectory.
People who use startups early do so because of the human interactions. AirBnB destroyed that by not being humane with the woman (EJ?). Sure, she has culpability, but I guarantee making her "right" would have cost one or two orders of magnitude less than this is costing.
I would also expect the board to replace the CEO as a symbolic gesture. Somebody has to take the blame or they will not be able to get the next round raised.
People who use startups early do so because of the human interactions. AirBnB destroyed that by not being humane with the woman (EJ?). Sure, she has culpability, but I guarantee making her "right" would have cost one or two orders of magnitude less than this is costing.
I would also expect the board to replace the CEO as a symbolic gesture. Somebody has to take the blame or they will not be able to get the next round raised.