Startup Funding Espresso – How To Start a Marketplace Business

How To Start a Marketplace Business Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In starting a marketplace business you must consider how to structure it and then how to build the supply and demand sides of it. For the structure, you can target a specific vertical by focusing on one segment or go horizontal and cover the entire space. To go horizontal you need to reach scale quickly. To go vertical you must focus on finding a product/market fit for that segment. The horizontal approach takes a great deal of resources while the vertical approach allows for a lower cost to enter the market. The next step is building out the supply and demand sides of the marketplace. The challenge is building out the supply side in a cost-effective way. Scraping the web for the supply side is one tactic. Providing value-added products to build the supply side is another. Once you have a critical mass of supply you can engage the demand side. Most markets only support a few major players so it's important to reach critical mass in the sector. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let's go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.