Marketplace dynamics: buyer mindshare is key to building a moat
Most marketplaces start off by providing a unique supply of products/services. Demand follows supply, and so the flywheel of supply and demand begins. However, as a marketplace gains popularity, its supply inevitably becomes less and less unique. I know this firsthand. At AbeBooks, our booksellers initially listed only with us, but then started to list […]
Introducing one of Version One’s earlier investments: VarageSale
Online marketplaces have made it easier than ever for people to buy and sell things. But the human element has been missing with the anonymity of Craigslist and eBay. That’s why I’m happy to announce an investment we did two years ago when we participated in the seed round of VarageSale. At the time, they chose […]
Is the Freemium Model the Future of Marketplaces?
The Freemium Model, where a vendor offers both a free and paid version of the product, has become the de facto business model for many SaaS companies. Freemium makes general usage free, while monetizing the heaviest users through premium features. This model has proven to work well for consumer apps like Spotify as well as […]
How to spark demand when creating a new market space
When it comes to market opportunities, you can either build a better product in an existing market, or create a brand new market altogether. In the first case where the product category and market are mostly defined, the playbook is relatively straightforward. Potential customers already know they have a need and are actively looking for […]
Apple killed the watch, but can it bring it back?
Apple’s first event of 2015 is scheduled for March 9 and if all the hype and rumors are correct, we will be hearing more details about the Apple Watch, which should hit the shelves in April. Apple’s smart watch is one of Apple’s most hyped products since the first iPad. Pebble’s huge success with their […]