A thread 🧵 on launching & understanding one of the most common types of startups: marketplaces (also called platforms), which connect buyers and sellers together.
The grandfather of this type of venture is Craigslist, basically every Craigslist category became a startup. 1/4
The grandfather of this type of venture is Craigslist, basically every Craigslist category became a startup. 1/4
Just before the pandemic, using billions of transactions, @a16z built a list of the biggest marketplace startups of today. The results are honestly not that encouraging for new startups: 4 older players, dominated by @Airbnb, take up 76% of all $ spent. 2/ a16z.com/2020/02/18/mar…
How do marketplaces make their money? By charging a fee on each transaction. This terrific piece of research lays out the amount each platform takes from a transaction. 3/
https://twitter.com/tanayj/status/1350610476510547970
If you want to launch your own marketplace (whether an “Uber for X,” peer-to-peer one or actually helping sell stuff) this is a terrific free ebook written by a VC on how these businesses work & how to be successful in launching one. 4/ versionone.vc/marketplaces-g…
For more on the Craigslist marketplace graphic, and how @CBinsights has used that template to illustrate startup opportunities in multiple industries though combinations of marketplaces and “unbundling” see👇
https://twitter.com/emollick/status/1317983722814189575
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