How we determine valuations for marketplaces
I often get asked about how to determine the valuation for a marketplace startup that is starting to scale. So I’ll run through some basic math for how we value marketplaces at version one. The main multiple we like to use for marketplace businesses is GMV (Gross Merchandise Volume…the total volume of goods sold on […]
Marketplace KPI Dashboard
A few months ago, I wrote about the questions that we typically ask when evaluating a marketplace opportunity. Now, inspired by our friend Christoph Janz at Point Nine Capital who created a KPI dashboard for early-stage SaaS, we have put together a KPI template for marketplaces. We recognize that every marketplace is different, but each […]
How to scale a marketplace
As a marketplace figures out how to bring buyers and sellers together and builds liquidity, the virtuous cycle starts kicking in. The growth of sellers and buyers quickly accelerates. The ultimate goal is that a successful startup grows into a big company. But as you begin to scale, there are new considerations and strategies to […]
Sales 3.0: evolution of the software sales function
It’s widely accepted that SaaS has permanently changed software sales. Enterprise software sales once meant a large “boots on the ground” field sales team who knew how to wine and dine the right individuals and stakeholders. With the emergence of SaaS, the sales process became more transactional and less about relationships. With software products at […]
Introducing an earlier investment: Volley, a friendly place for helping others
Last October, we made our first investment out of Fund II and are excited to announce this news today as the company launches publicly out of beta. Volley is a friendly place for helping others solve problems online. Volley members can post requests in response to the question, “What are you looking for?” You can sift through […]