Marketplace businesses exist to connect two or more parties, typically the buyers and the sellers. Investors love these marketplace businesses because they tend to grow quickly and spawn winner-take-all companies. A long line of successful Silicon Valley startups have found success providing a place for people to connect and transact. Examples of these kinds of companies include industry titans like eBay and LinkedIn but also include some of today’s web darlings like Uber and AirBnB.
You can read the Nir and Far blog post on: Marketplaces & The Curse of the Network Effect https://www.nirandfar.com/the-curse-of-the-network-effect/
Nir & Far, a podcast about business, behaviour and the brain by Nir Eyal. If you enjoy this podcast, please subscribe on iTunes and leave an iTunes review. It will greatly help new listeners discover the show. Please visit my website Nir and Far for other info about my writing, books and teaching: http://www.nirandfar.com/

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