business model 101: the basics of marketplaces, saas & ecommerce [reduced]
DESCRIPTION
An shorter introduction to some of our favourite investment areas: Marketplaces, Software-as-a-Service and Ecommerce. Starting with different ways of monetization, we dip into the major characteristics, address critical challenges and single out the KPIs you should keep an eye on. As presented in Startit Fest in Belgrade, http://startit.rs/TRANSCRIPT
Business models 101
The basis of SaaS, Marketplaces & eCommerce
@rodrigoMrz Belgrade, May 2014
Agenda
0. Intro to Point Nine
1. Marketplaces
2. SaaS (Software-as-a-Service)
3. Ecommerce
a. Major characteristics
b. Monetization
c. Key challenges
d. Top 3 KPIs
e. Examples & Trends
@rodrigoMrz
Intro to Point Nine Capital
@rodrigoMrz | [email protected]
• Berlin-based, investing in Europe
• 40mEur fund, focus in seed & series A
• SaaS and Marketplaces
*CJ
@rodrigoMrz
Funding sources
Idea Startup Early Maturity Growth
Clients
Crowdfunding
F&F
Accelerators
Angels
Fondos VC
Private equity
IPO
Debt
$
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3 business models
Supply Demand %
Software Users $
Product Customers $ $
Getting a commission for intermediating between supply and demand
SaaS: Charging users for a license fee for accessing a software
Marketplace
Charging users for accessing a software
SaaS
Selling products to customers and getting a margin for it
eCommerce
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Marketplaces (i) – intro
Challenges
• Generate liquidity
• Chicken and egg
• Monetization timing
Characteristics
• B2B / B2B2C / B2C / C2C
• Inventory vs digital
• Network effects
Supply Demand %
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Marketplaces (ii) – key metrics
When you start
• Supply: # of new/cumulated
listings
• Demand: growth in sign-ups
• Active Users (buyers / sellers)
• # Transactions
In the next phase
• Recurring customers
• Successful items/listings per
total
• Take Rate (% as of GMV)
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Marketplaces (iii) – examples Full-stack
Digital marketplace
1-click booking
Mobile-first
Peer2peer
Pioneers
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2. Software as a Service (SaaS)
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SaaS (i) – intro
Challenges
• Product development
• Marketing
• Conversions
Characteristics
• B2B / B2C
• Subscription
• Quality / Speed of product
• Cloud (no maintenance)
• Upfront payments
Software Users $
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SaaS (ii) – key metrics
When you start
• Inbound traffic
• Conversion funnel
• Churn
In the next phase
• MRR growth
• CAC: Only paid; for
each channel
• Churn!
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SaaS (iii) – examples Horizontal
Mobile-first
Platforms
Pioneers
Consumerization
Vertical
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eCommerce (i) – intro
Challenges
• Marketing costs
• Operations
• Competition on price
• Rocket Internet ;-)
Characteristics
• B2C / B2B
• Margins
• Own vs drop-shipping
Product Customers $ $
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eCommerce (ii) – key metrics
When you start
• CPO
• Margins
• AOV
• Revenue growth
In the next phase
• Recurring purchase
• Free-cashflow
• Inventory
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eCommerce (iii) – examples
Flash-sales
ReCommerce
Online brands
Pioneers
Hardware
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Thanks!