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Learnexamplesmarketplace-seed

Marketplace seed example

What investors expect from a seed-stage two-sided marketplace pitch.

Context

Stage
Seed
Business model
Two-sided Marketplace
Typical raise
$1M - $3M
Instrument
SAFE or Priced Round

At seed, marketplace investors expect to see early signs of liquidity. You need evidence that supply and demand are finding each other and transacting on your platform.

Investor mindset

Marketplace investing is different. Investors are looking for signs of the chicken-and-egg problem being solved:

Liquidity signals

Are listings converting to transactions? At what rate?

Unit economics path

Does your take rate support a real business?

Network effects potential

Will more users make the platform more valuable?

Supply acquisition strategy

How are you getting supply? Can you do it profitably?

Key marketplace metrics

Marketplaces have unique metrics. Investors will expect you to know and track these:

GMV (Gross Merchandise Value)

Total value of transactions through your platform

Benchmark: Growing 15-20%+ month-over-month at seed

Take Rate

Your commission per transaction

Benchmark: 5-20% depending on category (services higher, goods lower)

Liquidity

Percentage of listings that result in transactions

Benchmark: 20-30%+ for healthy marketplace

Time to First Transaction

How fast new users complete their first transaction

Benchmark: Under 7 days for most categories

Repeat Rate

Percentage of users who transact again

Benchmark: 30-50%+ within 90 days

Supply/Demand Ratio

Balance between buyers and sellers

Benchmark: Varies by model, but should be improving

Slide-by-slide requirements

Problem

Critical

Evidence needed: Both sides of the market. Pain points for buyers AND sellers.

Marketplaces solve coordination problems. Show the friction in the current market.

Solution

Critical

Evidence needed: How you connect both sides, your unique value proposition

Explain your matching mechanism. Why is your marketplace better than alternatives?

Market

Critical

Evidence needed: GMV potential, transaction volume, take rate benchmarks

Marketplaces need large transaction volume. Show the addressable GMV.

Traction

Critical

Evidence needed: GMV, transactions, liquidity metrics, cohort retention

This is where marketplace decks live or die. Show early liquidity.

Team

Important

Marketplace experience, domain expertise, hustle evidence

What works at seed

Cohort analysis - Show retention improving over time
Geographic or vertical focus - Dominate one niche first
Supply acquisition playbook - Repeatable, cost-effective
Testimonials from both sides - Buyers and sellers love you
Clear wedge - Why you win this specific segment

Common mistakes

Ignoring unit economics

GMV means nothing if you lose money on every transaction.

Launching everywhere at once

Marketplaces need density. Pick one city or vertical and dominate.

Only talking about one side

You need compelling value prop for both buyers AND sellers.

No retention data

First transaction is not enough. Show repeat usage.

Underestimating competition

Craigslist, Facebook Groups, and manual processes are competitors too.

Addressing the chicken-and-egg

Every marketplace pitch must explain how you solve the cold start problem. Common strategies:

Single-player mode

Provide value to one side even without the other. Tools for sellers, content for buyers.

Subsidize one side

Pay for supply acquisition initially. Common in services marketplaces.

Constrain geography

Launch in one city. Achieve density before expanding.

Aggregate existing supply

Pull in listings from other platforms to bootstrap.

Build your marketplace pitch

Pitchkit guides you through marketplace-specific requirements and metrics.

Get started

Related guides

Seed stage guideMarketplace pitch deck guideTraction slide guideMarket slide guideInvestor perspective
Previous: SaaS Pre-seedNext: Fintech Series A
On this page
  • Context
  • Investor mindset
  • Key metrics
  • Slide requirements
  • What works
  • Common mistakes
  • Chicken-and-egg
  • Build with Pitchkit
  • Related guides
Evidence needed:

Marketplaces are operationally intensive. Show you can execute.

Competition

Important

Evidence needed: Existing alternatives, why they fail, your wedge

Explain the market gap. Why now? What are incumbents missing?

Business Model

Critical

Evidence needed: Take rate, unit economics per transaction, path to profitability

Investors scrutinize marketplace economics heavily. Show you understand them.

Financials

Important

Evidence needed: GMV projections, revenue (take rate x GMV), burn rate

Show path from current GMV to sustainable revenue.

Ask

Critical

Evidence needed: Specific amount, use of funds split between supply and demand

Typically $1M-$3M at seed. Be clear on how you balance supply vs demand investment.