Solving the chicken-and-egg problem
Marketplace investors focus on liquidity, network effects, and take rates. Your pitch should demonstrate how you solve the cold-start problem and build defensible supply-side advantages.
Total value of transactions on your platform.
Benchmark: Varies by vertical. Show month-over-month growth.
Your revenue as a percentage of GMV.
Benchmark: Services: 15-25%, Products: 5-15%, Luxury: 10-20%.
Percentage of listings that transact within a time period.
Benchmark: Strong liquidity: >50% of listings transact.
Balance between supply and demand sides.
Percentage of users who transact multiple times.
Benchmark: Strong retention: >40% repeat within 90 days.
Show how you achieve and maintain liquidity
Demonstrate defensibility
Prove the model scales
Marketplaces are fundamentally different from other business models. You are building two businesses at once, and the value comes from the network, not the product alone.
You need supply to attract demand, and demand to attract supply. Investors want to see you have cracked this.
A marketplace without liquidity is just a listing site. Show that matches happen consistently.
The more participants, the more valuable the platform. Show how your network effects compound.
Your cut of each transaction determines unit economics. It must be defensible and fair.
Marketplace investors focus heavily on these slides. Make them bulletproof.
This is where marketplace decks are judged. Investors need to see:
How you acquire both sides is critical:
Marketplaces are often winner-take-most. Show your edge:
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