23 Marketplace Elements
The NFX Marketplace Scorecard helps us evaluate companies, and it helps us give advice to companies after an investment. It lays the foundation for you to find the right playbooks and leverage a marketplace’s strengths and eliminating its weaknesses. There are currently 23 elements we look at.
Name of Company
What is your target customer?
What is your marketplace nfx type?
Does your marketplace require geographic density? (i.e. high concentration of users in a given locale)
Does your marketplace have:
Economic Advantage for Supply Side? (can vendors make more money selling with you than somewhere else?)
Economic Advantage for Demand Side? (are products or services cheaper to buy with you than elsewhere?)
High Frequency on Supply Side?
High Frequency on Demand Side?
High ASP (Average Sales Price)?
Many Suppliers That Would Use the Marketplace?
Many Buyers That Would Use the Marketplace?
Control of the Payment Flow?
Enough Resources (Time or Money) to Solve the Chicken or Egg Problem?
A Way to Avoid Multi-Tenanting on The Supply Side? (prevent sellers from simultaneously listing their offerings on other marketplaces)
A Way to Avoid Multi-Tenanting on the Demand Side? (prevent buyers from browsing or purchasing on other marketplaces)
A Way to Prevent Disintermediation? (block buyers & sellers from moving transactions off-marketplace)
High Fragmentation on the Supply Side?
High Fragmentation on the Demand Side?
Asymmetries To Leverage for Growth? (a surplus on one side of the marketplace that can be leveraged)
A New Experience for Supply?
A New Experience for Demand?
Solutions That Address All Needs of the Supply Side?
Solution That Address All Needs of the Demand Side?
Large TAM (Total Addressable Market)?
Market Expanding Properties? (Does your market have high growth potential?)
Affordable, High Volume Growth Channels for Demand?
Affordable, High Volume Growth Channels for Supply?
To calculate your score, add up the total number of checks you have. The higher your score, the better. Each marketplace is different, and like most things the nuance matters. But we hope this checklist gives you a helpful compass as you build your company.
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This form was created inside of NFX.