Great news for the service. I've used it a couple of times (both domestically and abroad) and have an upcoming trip abroad planned with them.
Execution in this realm is key. It has both users and hosts motivated and engaged. The recommendation system allows for visible feedback both on the places and the people looking for places, and for me, this is key.
I won't book a place that doesn't have existing good feedback. In my last international trip, I skipped a more convenient venue that had no comments and the host indicated "if anyone asks, you are a friend" for a couple that had an established good track record a bit farther away. The additional information is very helpful.
I hope the guys prosper.