Marketplaces refer to digital platforms that connect buyers and sellers to trade goods and services. The marketplace sector has seen significant growth in recent years, with global investment in marketplace startups reaching $50 billion in 2020.
Important Trends in Marketplaces
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B2B Marketplaces: B2B marketplaces are digital platforms that connect businesses to buy and sell goods and services. Some of the biggest players in this category include Alibaba (China), Amazon Business (USA), and Indiamart (India).
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Vertical Marketplaces: Vertical marketplaces are digital platforms that focus on a specific industry or niche. Some of the biggest startups in this category include Zillow (USA) for real estate, Etsy (USA) for handmade goods, and Uber (USA) for transportation.
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On-demand Marketplaces: On-demand marketplaces connect customers with providers for goods and services in real-time. Some of the biggest startups in this category include Uber (USA), Postmates (USA), and Instacart (USA).
Success Cases in Marketplaces
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Amazon: Amazon is one of the largest and most successful marketplace companies in the world. The company has a market capitalization of over $1.5 trillion and is known for its e-commerce platform and cloud computing services.
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Alibaba: Alibaba is one of the largest e-commerce companies in the world, with a market capitalization of over $700 billion. The company operates multiple marketplaces, including the Alibaba.com B2B marketplace and the Taobao C2C marketplace.
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Uber: Uber is one of the largest transportation network companies in the world, with a market capitalization of over $100 billion. The app connects riders with drivers through its app, and has also added food delivery.
Important Marketplace Investors
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Accel: Accel is a venture capital firm that invests in technology startups, including marketplaces. It has offices in several regions and invests mostly in the US and Europe.
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FJ Labs: FJ Labs is a venture capital firm that invests in marketplaces and other technology startups. Stage agnostic, the firm has a portfolio of over 1000 companies and was founded by Fabrice Grinda and Jose Marin.
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Sequoia Capital: Sequoia Capital is a venture capital firm that invests in technology startups, including marketplaces. It invests mostly in the US, Europe and China, and the portfolio includes marketpaces like DoorDash or Airbnb.