Unlocking new value: adding the sixth factor in our marketplace criteria
We are often asked what we look for when evaluating marketplaces. Typically, we list out five main factors: High fragmentation: a lot of suppliers and buyers A “playing the field” relationship between buyer and seller, as opposed to monogamy where the seller doesn’t have any need to visit the marketplace after the first time High […]
Growth versus capital efficiency
I often see two entrepreneurs executing on similar opportunities, but with two very different capital efficiencies. First, there’s the aggressive one who spends money very quickly, building a large team, buying early growth through aggressive marketing and sales, and hoping for a large upround in the next financing round. Then, there’s the bootstrapping entrepreneur who […]