Marketplace Metrics 

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Here are the key metrics for marketplace startups:

Match rate - the rate at which buyers and sellers engage with each other.

To calculate, take the number of transactions in which there is a successful match and divide by the total number of attempted transactions.

Time to match - how long it takes to match a buyer and a seller.

To calculate, take the time to match for each transaction and calculate the overall average. 

Concentration - measures how fragmented or concentrated the buyers or sellers are.  

To calculate, take the top 10 buyers or sellers and measure their gross margin value and compare to the total gross margin value.

Take rate - the amount of revenue the marketplace takes from each transaction.

To calculate, review the transaction fee divided by the gross margin value and average across all transactions.

Unit economics - the business model shown at a unit economic level rather than in aggregate.

To calculate, measure the customer acquisition cost and organic customer rate over time to see if the former is going down and the latter is increasing.

User retention - measures the length of time the user stays with the company.

To calculate, average the time users stay with the company and track in each cohort to see if it’s increasing over time.

Marketplaces have their own metrics with which you can measure the effectiveness of your startup.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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On this episode of Investor Connect, Hall welcomes Alex Fauvel, Founder and General Partner at Two Hop Ventures.

Headquartered in Amsterdam, North Holland, Two Hop Ventures is a traditional investment firm that invests capital in projects from around the globe that aim to secure the internet on a blockchain. The fund focuses on pre-seed to seed-stage startups and does not acquire or handle any crypto tokens of any kind. As a first-time fund manager that performed its final closing in April last year, Two Hop Ventures was able to raise just €2.7Mln. Having invested over €1Mln of the capital, Two Hop Ventures was able to acquire stakes in companies that have seen a book value increase of 30x. Two Hop ventures will be opening a second fund towards the end of 2022 with the same investment focus.

Founder of the first public venture capital fund focused solely on the version of BitCoin that follows Satoshis Vision, Alex is committed to ensuring that BitCoin fits seamlessly into our world. With a background in Mechanical Engineering, Alex understands the importance of the development of technical standards in the growth of an industry. He is a member of the Bitcoin SV Technical Standards Committee and knows that the Committee will be able to assist parties in developing robust standards that allow companies to interoperate seamlessly across all types of industries.

Alex shares with Hall what excites him now in Bitcoin and how he sees the industry evolving. He advises startups and investors and discusses some of the challenges they face.

You can visit Two Hop Ventures at www.twohop.ventures, and via LinkedIn at www.linkedin.com/company/twohop.  

Alex can be contacted via email at alex@twohop.ventures, via LinkedIn at www.linkedin.com/in/alexfauvel, and via Twitter at www.twitter.com/alex_fauvel.  

______________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.