Marketplace infrastructure

Marketplace Infrastructure April 30, 2015

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What is Marketplace Infrastructure?

Marketplace infrastructure is technology and services that help facilitate marketplace transactions

§  Marketplace Infrastructure is the often invisible layer that helps facilitate marketplace transactions. Without these technologies and services, using such marketplaces would be unattractive to certain individuals

§  Examples of marketplace infrastructure include: payment software, background checks, liability insurance, shipping solutions and data privacy protection

§  Additionally, marketplace infrastructure can be products and service that support those providing their services on these marketplaces

§  Examples in this case are: revenue optimization applications, cleaning services for home rentals, tax help services for “1099” workers, and simplified healthcare plans

Ridesharing Management

Homesharing Management

Privacy and Security Insurance Payments Tax

Major Verticals and Sample Companies

OPUS

Source: Team Analysis

Business to Business

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Key Insights

Consumer-Focused

§  There is an increasing prevalence of people relying on Peer-To-Peer marketplaces to source full-time work

�  The 1099 worker is an underserved demographic that is poised to grow rapidly as the benefits and earning potential of peer-to-peer platforms increase

§  Technologies and services that provide support to individuals operating within these marketplaces and outside the sharing economy will be most sustainable

Business to Business

§  A higher number of industry competitors contributes to a need for “portable/pluggable technologies” and understanding consolidation trends will lead to identifying emerging winners

�  Both historical evidence and current trends point to large consolidation and the dominance of only a few large platforms as peer-to-peer markets mature

§  Infrastructure providers whose services are cross platform are more sustainable than those that focus on one vertical

§  Marketplaces are beginning to offer more personal/in-home transactions (Airbnb vs eBay), which has lead to an increased demand for trust and security on their respective platforms

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1. A Shift Towards Services: The New Peer-to-Peer Paradigm

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New Peer-to-Peer Marketplaces Feature More Intimate Transactions Leading to New Infrastructure Needs

Old P2P Marketplaces

New P2P Marketplaces

Sample Companies

§  Used for part-time income

§  Generally use one platform

§  Transactions are distant and remote

§  Low technology requirement

§  Full-time income sources

§  Driven to multiple platform - > long term consolidation

§  Personal/in-home (Airbnb)

§  Focused on services

Sample Companies

Examining the history of old marketplaces can suggest a potential future for their new counterparts


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Trust and Security is Paramount in the Sharing Economy and Companies are forced to come up with Innovative Ways to Gain that Trust

Traditional Solution

Problem Solved

DogVacay Solution Hurdle

§  In order to have a successful platform, DogVacay must provide a sense of trust to their users

§  They achieve this through: §  highly selective dog sitter process, §  constant review of dog sitter performance §  robust customer care team §  24 hour concierge §  daily video and photo updates §  dual pet insurance

§  A new Pew Research report showed that only 19% of Millennials believe most people can be trusted, while 31% of GenX’ers do

§  Gaining people’s trust is essential, especially in a marketplace that features intimate transactions (ie. dog sitting)

Helping dog owners find the right dog sitter while taking a vacation

Expensive kennels give dogs minimal freedom, but are reliable and will keep the dog safe

Source: Forbes.com, DogVacay, Team Analysis

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2. Current Innovations: Marketplace Infrastructure

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Innovations span multiple verticals throughout the peer-to-peer value map

Other

Ridesharing Management

Homesharing Management

Privacy and Security

Insurance

Payments

Tax

OPUS

Industry Breakdown


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Insurance & Taxes Aggregators

Security & Trust


§  The shift toward service-based peer-to-peer networks has increased the demand for trust and security. The increasing imitate nature of p2p platforms like Uber and Airbnb has created opportunities for companies to increase security and trust between transactions

§  Companies like OPUS provide quick background checks on rideshare drivers and homeshare renters

Payment & Shipping

Companies that Span Multiple Verticals

Identifying cross-industry applicability is key to infrastructure sustainability and platform independence

OPUS

§  Payment is one of the most pervasive and ubiquitous services that is needed throughout the peer-to-peer economy

§  Shipping is another subset of marketplace infrastructure

that is needed across the board as more transactional marketplaces begin to emerge

§  Aggregators have high staying power because they are not dependent on a single vertical and provide support to multiple peer-to-peer platforms

§  SherpaShare is a management service for independent contacts to aggregate analytics and metrics across platforms like Airbnb, Uber, DoorDash etc.

§  A handful of startups are tackling the issues related to insurance and tax preparation faced by many of the independent contractors that power the peer-to-peer platforms

§  As the peer-to-peer industry grows and policymakers turn their attention to the growing number of 1099 workers, specialized insurance and tax services will be needed

Companies that offer products and services that are applicable across multiple verticals and peer-to-peer platforms enjoy higher levels of stability and a broader market than those that focus on a single vertical

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79%

17%

4%

Market Share via Monthly Unique Web Traffic

Uber

Lyft

Sidecar

Ridesharing Support Companies are Largely Dependent on Uber

Highly concentrated market increases risk by limiting M&A possibilities and increasing chance of obsolescence

§  The long term growth of businesses catering to the ridesharing market is largely dependent on Uber, which owns ~79% of ridesharing market share

�  This proxy for market share is consistent with Monthly Unique iTunes Downloads

§  Because of the high concentration within this market, the exit opportunities for companies that support ridesharing platforms hinge largely on the actions of Uber

§  Uber can acquire these companies, or render them obsolete by integrating their service organically

§  Companies that provide support and ancillary services to this market have limited exit opportunities and must plan accordingly 80%

20%

Market Share via Monthly Unique iTunes Downloads

Uber

Lyft

Sidecar


Marketplace infrastructure companies that operate in the ridesharing market are highly dependent on the growth and actions of Uber as ridesharing is one of the most concentrated industries

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Homesharing Support Companies Currently Enjoy More Exits and Revenue Stability

Consolidation trends threaten the growth and exit opportunities the currently diversified market offers and many companies only cater to top platforms

§  Long term consolidation is a concern: �  HomeAway has executed 19 acquisitions of smaller

homesharing and vacation rental companies including VRBO

�  House Trip, Wimdu and 9flats has experienced a declining share of online traffic

�  Flipkey has experienced considerably lower growth than that of Airbnb, VRBO, and HomeAway

§  Marketplace infrastructure companies that cater to the homesharing market currently enjoy a larger number of strategic buyers and revenue streams from a multitude of platforms

�  However, Airbnb represents almost half of the market with ~42% of monthly unique visitors going to Airbnb.com

42%

22%

20%

9%

Market Share via Monthly Unique Web Traffic

Airbnb

VRBO

HomeAway

FlipKey

House Trip

Wimdu

9flats

Industry Wide

Airbnb Only

Stab

ility

7%


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3. Rise of The “1099” Worker

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42.6 43.8 45.1 46.3 47.6 48.8 50.1 51.3 52.5 53.8 55.0 56.3 57.5 58.8 60.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1099 Workers are Expected to Surge to 40% of the U.S. Workforce by 2020

§  Although the Bureau of Labor Statistics does not accurately and consistently track these numbers, the federal government approximated 42.6 million in 2006

§  According to a study conducted by Intuit in 2010, the U.S. workforce by 2020 will exhibit more than 40%, or 60 million employees, as independent contractors

§  Studies indicate that in 2015 about 34% of the workforce or 53 million people will file some form of 1099

Definition

§  “1099 workers” are employees who fill out a tax form titled “Form 1099,” signifying their status as independent contractors

§  Currently, the IRS even has a 10 question assessment that differentiates 1099 from W-2 workers, or those who are officially on payroll

Market Size and Growth Trends

Number of U.S. Independent Workers, Millions, 2006-2020

Source: Intuit 2020 Report, “America’s Uncounted Independent Workforce” by the Freelancers Union, Bureau of Labor Statistics, Reuters, Team Analysis

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Despite certain obstacles, 1099 workers can gain from an evolving landscape Companies still take advantage of 1099 workers in regard to taxes and benefits

§  Tax laws remain disadvantageous for 1099 workers

§  Workers pay higher tax burden than employees, since for traditional employees a company would pay half of the Social Security and Medicare taxes

§  Additionally, contractors must keep track of their own records

§  1099 workers are also not guaranteed rights under the Fair Labor and Standards Act, which provides systems such as minimum wage

§  Research indicates that local businesses may misclassify 10% to 60% of employees as independent contractors for their own gain

However, increased attention from the government attracts people to 1099 status

Source: Bloomberg BusinessWeek, Fortune Magazine, Reuters, Congressional Research Service, Team Analysis

§  In 2009, six bills were introduced concerning the misclassification of employees. For instance, the Patient Protection and Affordable Care Act included provisions on the rights of 1099 workers

§  In the coming years, these regulations will reduce federal, state and local tax gaps, decrease government outlays for employee benefits, lead to higher worker compensation and protection, and result in better allocation of resources

§  The improving environment coupled with the possibility of greater career flexibility and higher earnings potential makes becoming a 1099 workers increasingly attractive

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Services for 1099 Workers Represent a Major Opportunity in Infrastructure

Current Problem

§  Mobile technology, internet access, and a shift in the generational mindset has expanded the sharing economy

§  Companies avoid costs by employing 1099 workers, since they are not required provide tax, healthcare, retirement or insurance benefits

§  Various new companies have sprung up that either directly cater to 1099 workers or are top employers of this labor segment

Companies Trying to Create Solutions

Source: Fortune Magazine, Reuters

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4. Current Innovations: 1099 Support

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Current Innovations – 1099 Workers

Opportunities catered towards 1099 workers are becoming a prominent category of marketplace infrastructure

§  As the number of 1099 workers increases, the demand for companies and services that cater to independent contractors will increase

§  Already, a large number of startups have started providing both products and services to help address the problems independent works encounter with regards to management and tax/finances

§  Further, a small number of startups are moving beyond these two broad categories and providing unique services to contract workers

�  For example, groove provides membership-based clubhouse for rideshare drivers to relax and recharge in-between rides

Management Workspace Tax/Finances


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5. Looking Forward: Marketplace Concentration, Stability, and Consolidation

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eBay Acquired Competitors and Infrastructure Providers

eBay’s acquisition history highlights a trend of rapid marketplace consolidation and strategic purchases

§  eBay is one of the first massively successful peer-to-peer platforms and its actions provide insight into the new peer-to-peer markets like Uber and Airbnb

§  In the last two decades eBay has fueled a significant portion of its growth through mergers and acquisitions of both direct competitors, and companies that provide marketplace infrastructure

§  eBay’s history points to aggressive acquisition of marketplace infrastructure with the goals of

1.  Protecting its position 2.  Extending its market

segments 3.  Improving its customer

relations

Target Function Value Date Billpoint E-commerce Payment Systems - 1999

Blackthorne Listing Tool - 1999

Precision Buying Service E-commerce Payment Systems - 2000

PayPal E-commerce Payment Systems $1.5B 2002

Shopping.com Price Comparison Service $620M 2005

Meetup.com Social Networking Service $10M 2006

StumbleUpon Browser Plugin $75M 2007

Fraud Sciences Online Risk Management $169M 2008

Positronic Inc. Machine Learning - 2009

GSI Commerce Marketing/Fulfillment $2.4B 2011

Where, Inc. Search and Recommendation $135M 2011

Svpply Social Shopping - 2012

Decide.com Price-Forecasting - 2013

Braintree Payments $800M 2013

Shutl Rapid Fulfillment Service - 2013

PhiSix Fashion Labs Virtual Clothing - 2014

eBay’s Marketplace Infrastructure M&As

Source: S&P Capital IQ, Team Analysis

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PayPal vs. Billpoint in the Battle for eBay: The Risk of Reliance on a Single Marketplace for an Infrastructure Provider

PayPal and Billpoint epitomize the highly competitive and zero-sum environment companies face when they rely heavily on a single platform that dominates its industry

§  For a time eBay, had no built-in payment services to offer their users. To address this issues, they acquired Billpoint, a person-to-person money transfer service

§  Because of the acquisition of Billpoint, it seemed that other payment services like PayPal, which relied heavily on eBay transactions for business, were at a risk of being forced out of the market and going out of business

§  However, Billpoint failed to gain traction and eBay ultimately bought PayPal for $1.5B �  Billpoint services were soon discontinued

§  Many of the companies that support large platforms like Airbnb and Uber have the same characteristics as PayPal and Billpoint

�  E.g. Everbooked, Guestly, Huitly, and Proprly all provide similar services exclusively to Airbnb users

Source: S&P Capital IQ, Team Analysis

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Airbnb and Lyft: Following in the M&A Footsteps of eBay

Both companies have started acquiring competitors and infrastructure, following a consolidation trend that closely matches that of eBay

§  Airbnb and Lyft have made a number of purchases that closely follow the acquisition pattern of eBay

§  However, there is greater focus on buying companies that provide auxiliary services to the consumer, rather than to expand market share

�  This reflects the service-oriented nature of the peer-to-peer market today

§  This foreshadows a large number of buyouts from many of the large peer-to-peer markets as they look to provide the best experience to their customers

�  Uber has recently made its first acquisition (deCarta) and if this trend holds, it can be expected to make a number of acquisitions in the near future

Airbnb Lyft

Pencil Lab

DailyBooth NabeWise

Fondu

Localmind

Rover Cherry

Accoleo Cashpadder Hitch

Mar

ketp

lace

Infr

astr

uctu

re

Com

petit

ors


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6. Looking Forward: New Marketplaces and Services

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New Platforms (Marketplaces)

Forerunners of the new sharing economy, these new platforms are primed to disrupt their industries

Company Business Focus Highlights

$2.1 Online Travel §  A platform that connects travelers to original

experiences through native-citizen individuals §  Currently exists in 900 cities in 100 countries, with

5000 pre-screened providers

1

$3.3 Boating §  Driven to offset the cost of owning a boat in as many as 1-2 rentals

§  Boat owners and lessees are pre-screened, there have been upwards of $3.1M in insurance policy

2

$50k Online Payments §  Allows individuals and organizations to create custom online payment platforms

§  Services began focused in schools, verticals are now expanding

3

$500k Mobile §  Designed to give youth access to develop the skills and experiences for careers

§  Considered LinkedIn and driven to combat rising unemployment rates

4

Unknown P2P Pricing §  Designed to allow makers and innovators to determine the value of their products

§  Pricing is backed by an algorithm, marketplace is the next step in sequence of company’s growth

5

Funding $US Millions

Vayable

Boatbound

Cheddar-Up

Rock Your Block

The Pricerie


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The Product

Source: Company Website, Team Analysis

Geographic Breadth

Amazon’s recent announcement of Amazon Home Services confirms the long-term potential of the peer-to-peer economy

§  Amazon recently launched Amazon Home Services, an online marketplace for professional services that consists of 2.4 million individual services, 700 service options, and availability in 41 U.S. states

§  Amazon guarantees complete customer satisfaction by doing background checks, processing customer reviews, and offering refunds if the customer is left unsatisfied or can find cheaper comparable services

§  “Pros,” or those performing the service, must be invited, vetted, and licensed in order to be registered

§  Amazon takes a base 5% transaction fee and then additional fees range from 15-19% of the sale

Our Take §  Amazon Home Services solidifies the company’s focus on

the peer-to-peer economy and its delve into a marketplace for services rather than simply products

§  According to the company, over 85 million Amazon customers are shopping for products that need professional services, which highlights high demand and a viable market

§  Amazon will work with marketplace providers and start-ups such as TaskRabbit, TakeLessons and Pep Boys to ensure the best quality, implying that the company does not intend to completely overwhelm smaller competitors

§  The company’s new endeavor indicates how important the sharing economy is going to be in the long run

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Future Outlook

§  There is a pressing need for increased security, privacy and trust Craigslist is working with local police to provide “safe zones” to complete transactions

§  Following in the footsteps of Uber and Airbnb, a large number of companies will strive to create peer-to-peer platform for industries that are still largely traditional, creating many opportunities for marketplace infrastructure companies to innovate

�  DogVacay – Pet Services �  Boatbound – Boat Rental �  VoulezVousDiner – Local Eating Experiences �  Shiphawk, Shyp – Shipping

§  The shipping vertical, in particular, has a lot of promise as it is a major pain point for many small businesses and individuals. By making it cheaper and more convenient, players such as Shyp and Shiphawk can take a major hold on an emerging infrastructure vertical

•  As more people rely on peer-to-peer platforms as full time 1099 workers, we expect to see innovative companies cater to the needs of these workers beyond insurance and tax services

�  Groove provides rideshare drivers an exclusive clubhouse lounge space to wait and recharge between rides

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Final Takeaways

§  Marketplaces used to be transactional and anonymous; but as they become service oriented (HomeJoy) and more intimate (Airbnb) trust, reputation, and security has become a rising concern

§  Marketplace dominance is inevitable and the big players will either grow via M&A or by building walled gardens; it's important to know each large marketplace's strategy on long-term outlook

§  Key concern going forward is how 1099 employees will be treated legally and how to build services that support both them and the marketplaces for which they work

§  Portability of reputation across platforms will build trust and enable more intimacy for new marketplaces; layered social validation will also help appease trust concerns

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Contact Information

Karlin Ventures | @karlinventures

Arteen Arabshahi | @arteeninla

Erin Shipley | @erinbshipley

TX Zhuo | @txzhuo

Research Group

Brian HarwiK | [email protected]

Clark Zhang | [email protected]

Tanner Stults | [email protected]

Zachary BenfanS | [email protected]

Danielle CharpenSer | [email protected] CoVenture | @coventurevc

Ali Hamed | @alibhamed

Thatcher Bell | @thatcherbell

Mike Beller | @mjbeller

Jamil Goheer | @jamilgoheer

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Appendix

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Case Studies: Marketplace Infrastructure

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Stripe

Seed-Stage start-up that offers finance and insurance tools for independent contractors

Driven to simplify tax and insurance and overcome barriers to entry in highly regulated markets

Headquarters San Francisco, CA

Funding $190M (after Series D)

Management Team

•  Patrick Collison, Co-Founder and CEO •  John Collison, Co-Founder and President

Founded 2010

Key Features §  Simple APIs are built for developers and reduce need to design payment forms

§  Stripe’s tools integrate online and on mobile devices across different currencies and payment systems (i.e. Bitcoin and Apple Pay)

§  Support system mitigates accounting, fraud, security, and operational risks

Costs and Fees §  2.9% + $0.30 per successful charge §  Extra 2% on market exchange rates

Late-stage start-up that utilizes unified APIs and tools to enable business to manage online

payments

Provides infrastructure across various devices and payment platforms to an international audience


Funding

Management Team

Founded

Key Features

Costs and Fees

With the backing of several key investors, Stripe maintains its position as an independent player in

the payments space

Source: Company presentation, Stripe, Team Analysis

Stripe is an established player in the marketplace and opportunity for growth, through international

expansion, is solid

§  As a late-stage start-up, Stripe has seen growth and has secured prominent clients such as Kickstarter, Lyft and Shopify

§  Growth is expected to continue with investments in Stellar (a decentralized payment network), partnerships with Apple Pay, Bitcoin, and Twitter, and unveiling of Stripe Connect, a service that enables anyone selling on an online marketplace to accept credit and debit cards

§  Company could see some obstacles in international expansion, because setting up local offices is costly and all transactions need to be converted into U.S. dollars

Product Description Basic Overview

Investors Our Take

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Checkr




Headquarters

Funding $9.12M (after Series A)

Management Team

•  Jonathan Perichon, Co-Founder •  Daniel Yanisse, Co-Founder

Founded 2014

Key Features §  The mobile friendly format of Checkr allows clients to screen candidates quicker and hire faster

§  Color-coded dashboard and simplicity of reports make evaluation simple

§  Simple API of Checkr provides easy to understand data in a formerly undisrupted industry

Costs and Fees §  Standard package: $25/month §  Pro package: $35/month


Series-A start-up automates the process of professional background checks

With reports that return in less than 24 hours, Checkr hopes to quicken the professional

background check process

Headquarters

Funding

Management Team

Founded 2014

Key Features

Costs and Fees

Investors

Start-up should expect to see growth through its use of API technology

Source: Company presentation, Checkr, Team Analysis

Our Take

With innovative idea and significant market demand, Check’s growth is evident but it should

broaden its market to scale further

§  The company is currently processing about 10,000 background checks per month; the niche market provides ample opportunity for Checkr to grow and disrupt the marketplace

§  However, clients are limited to only those who are doing background checks for commercial purposes

§  Checkr is hoping to cater not only to workers in the “sharing economy” but also to independent contractors

§  The ability to scale depends on the how quickly clients sign on new contractors, but by utilizing modern API (in lieu of customer support) Checkr can grow rapidly

San Francisco, CA

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Case Studies: 1099 Support

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Proprly

Seed-Stage start-up that is driven to capture cleaning and key delivery services to the

homesharing marketplace

Headquarters New York City, NY

Funding Undisclosed (Seed)

Management Team

•  Randy Engler, Founder and CEO

Founded January, 2013

Provides verified cleaners that are ready to go at a moment’s notice

Key Features §  Offers trusted, reliable, on-demand cleaning and key delivery services for hosts of Airbnb, HomeAway and VRBO

§  Operates under premise of “best rental feels like a home and runs like a hotel”

§  Currently only services Manhattan and Brooklyn

Costs and Fees §  Charges a flat rate of $40 for delivery

§  Charges $125 for standard cleaning of 1BR complex

Proof-of-concept stage company with gaining traction in collaborative marketplace

On-the-rise company that has been wonderfully reviewed, but stands to gain from scaling

§  Innovative concept that capitalizes on the new economy and P2P marketplace in the housing industry

§  Future consolidation trends could potentially threaten the existence of the company

§  As of now, company is heavily reliant on market built up by Airbnb and is using a referral system to identify and capture customers

§  Crux of company is security and ensuring that cleaners and key deliverers are properly background-checked

§  Clear-cut and straightforward pricing model §  Challenge is going to be expanding outside of NYC metro

Source: Company presentation, Proprly, Team Analysis


Business Partners Our Take

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Zen99




Funding $2.6M (3 Seed Rounds)

Management Team

•  Yan Lhert, Co-Founder and CTO •  Tristan Zier, C0-Founder and CEO

Founded 2014

Key Features §  Tracks finances, estimates/minimizes taxes and secures insurance in light of growing regulations

§  Available on any tech device §  Identified a need with the rise of

independent contractors, is aiming to alleviate the grunt work

§  Focuses on retaining earnings and locating affordable healthcare plans

Costs and Fees §  Commission-based




Funding $2.6M (3 Seed Rounds)

Management Team

•  Yan Lhert, Co-Founder and CTO •  Tristan Zier, C0-Founder and CEO

Founded 2014

Key Features §  Tracks finances, estimates/minimizes taxes and secures insurance in light of growing regulations

§  Available on any tech device §  Identified a need with the rise of

independent contractors, is aiming to alleviate the grunt work

§  Focuses on retaining earnings and locating affordable healthcare plans

Costs and Fees §  Commission-based

High-potential and ceiling company poised to continue its nationwide expansion

Source: Company presentation, Zen99, Team Analysis

Opportunely-launched company in climate of 1099 workers, quantifiable room for sustained growth

§  Proprietary dashboard that simplifies taxes and insurance is the key ingredient and metric for growth

§  Currently sees 3 strong competitors in the market §  Tools are available nationwide, but insurance features are

restricted to healthcare in California §  Zen99 University, referrals and partnerships steers a lot of

the traffic that the company has seen to date §  Very solid model of collecting commission from insurance

and defraying those funds to free tax management tools §  Biggest challenge is education and staying attuned to

changing regulatory compliance policies


Investors Our Take

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Benny


Seed-Stage start-up that is looking to revolutionize the freelancer’s back office

Founded by an independent worker for independent workers



Management Team

•  Jacob Brody, Co-Founder and CEO •  Luciano Cheng, Co-Founder

Founded Unknown

Key Features §  Offers insurance, accounting and tax support for those self-employed

§  Targets both marketplace companies as well as platforms

§  Has focused so far on drivers, cleaners, writers, caterers, photographers and carpenters

Costs and Fees Undisclosed

Seed-Stage start-up that is looking to revolutionize the freelancer’s back office

Founded by an independent worker for independent workers



Management Team

•  Jacob Brody, Co-Founder and CEO •  Luciano Cheng, Co-Founder

Founded Unknown

Key Features §  Offers insurance, accounting and tax support for those self-employed

§  Targets both marketplace companies as well as platforms

§  Has focused so far on drivers, cleaners, writers, caterers, photographers and carpenters

Costs and Fees Undisclosed

Infancy-stage company currently seeking institutional investments beyond seed stage

Interesting idea and concept, will be critical to scale the core competency of the company

§  Essentially the virtual ops manager for the self-employed §  Sells itself as taking care of the “boring stuff” so the

individual worker focuses on nature of work, not behind-the-scenes operations of the company

§  Extremely young, still too early to forecast a trajectory of growth

§  Aiming to capitalize on the rise of freelancers in the new US economy

§  Revenue model as it stands is ambiguous to potential clients

§  Must establish a clear-cut set of industry verticals

Source: Company presentation, UseBenny, Team Analysis


Investors Our Take

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Research Approach

§  We conducted a top-down analysis of Marketplace Infrastructure to determine the key salient sources of innovation, and profiled several major technological disruptors

§  Our data sources include relevant start-up founders and employees, primary research, and proprietary databases

§  Our analysis encompasses the following areas: � An analysis of key difference between the old and new peer-to-peer markets � Types of existing innovation � Selected company profiles of existing innovations � Current marketplace dynamics � Potential for further innovation in the future

Technology

Marketplace infrastructure