Last Thursday at #TheNTWKAcademy Nick Fulton shared with #NTWKers how marketplaces are transforming every industry. He noticed that the network effect is stronger than a brand and explained why VCs are interested in marketplaces. Find the quotes below, and join our #TheNTWK community if you want to watch the full video.
A transaction isn't only about payments. Payments are one aspect of a transaction. So in a transaction, you have the payment, and actual movement of money, but you might have some added services, lending or insurance, like FinTech-enabled aspects of that transaction, and delivery is also part of the transaction.
Not all network effects are equal, but there's definitely a first-mover advantage. Network effects are always stronger than a brand, sitting and fighting alone.
As a marketplace, you remain asset-light. You don't actually own or pay for the item or service while it's going through your marketplace. You just sit as an intermediary, where the payments go through you, but you don't actually front the money.
Most investors and VCs now are interested in the marketplace space. The reason why they love asset-light marketplaces is that they can scale incredibly quickly. If businesses can't scale to a large size, they’re not very attractive to them.Become a member of our #TheNTWK community to access the complete video.
Become a member of our #TheNTWK community to access the complete video.