[{"command":"settings","settings":{"basePath":"\/","pathPrefix":"","ajaxPageState":{"theme":"bvp_2015","theme_token":"8NTUa8zArSUPWPtaNoe420pQHHZlYDjof1_bah6jRP0"}},"merge":true},{"command":"modal_display","title":"Marketplaces","output":"\n\u003Cdiv class=\u0022field field-name-body field-type-text-with-summary field-label-hidden\u0022\u003E\n\n \n \u003Cdiv class=\u0022field-items\u0022\u003E\n\n \n \u003Cdiv class=\u0022field-item even\u0022 property=\u0022content:encoded\u0022\u003E\u003Cp\u003E\u00a0\u003C\/p\u003E\n\u003Cp\u003EBessemer\u2019s earliest marketplace investment dates back to 1998, when we led the initial institutional round in Hotjobs \u2013 the first Internet job marketplace. It went public in 1999 and was acquired by Yahoo in 2002. Since then, Internet marketplaces have evolved and proliferated substantially, opening the door to considerable opportunity in areas where there is no entrenched incumbent.\u003C\/p\u003E\n\u003Cp\u003EThe problem with investing in new horizontal marketplaces to compete with the likes of eBay, Craigslist and Alibaba is that the winners have already been declared, and their strong network effects make it impossible to disrupt them head on. Because there isn\u2019t room for many (if any) more horizontal Goliaths, we have shifted most of our focus to vertical marketplaces.\u00a0 Much like AirBnB built a business focused solely on the \u201csublets\/temporary housing\u201d category on Craigslist, vertical marketplaces businesses cherry-pick a single category from a broader horizontal leader. With intense, narrow focus, these companies can deliver a vastly improved customer experience, presenting an opportunity to bleed liquidity from a dominant incumbent.\u003C\/p\u003E\n\u003Cp\u003EOver the past few years, we\u2019ve seen vertical marketplaces emerging at an extremely rapid pace, and we\u2019ve given a lot of thought as to why this is happening now with \u003Ca href=\u0022http:\/\/www.forbes.com\/sites\/valleyvoices\/2014\/11\/10\/no-horizontal-space-why-the-internet-is-spawning-vertical-marketplaces\/\u0022 target=\u0022_blank\u0022\u003Eincreasing velocity\u003C\/a\u003E.\u00a0 We believe that marketplaces are at the forefront of changing the way we work, buy goods and procure services, but most vertical marketplaces are still in their infancy.\u003C\/p\u003E\n\u003Cp\u003EOur team is actively evaluating marketplace investments.\u00a0 If you have a business plan or executive summary for a marketplace business, or you would like Bessemer to help you understand how your marketplace\u2019s data compares against our database of marketplace benchmarks, please e-mail \u003Ca href=\u0022mailto:marketplaces@bvp.com\u0022\u003Emarketplaces@bvp.com\u003C\/a\u003E. We are happy to share our analysis with you and look forward to speaking with you.\u003C\/p\u003E\n\u003Cp\u003EWe are bullish on this sector and will regularly share relevant thinking on the BVP blog.\u003C\/p\u003E\n\u003Ch2\u003Ebvp marketplaces collateral\u003C\/h2\u003E\n\u003Cp style=\u0022text-align:center\u0022\u003E\u003Cimg alt=\u0022\u0022 src=\u0022\/sites\/default\/files\/BVP%20Marketscape.jpg\u0022 \/\u003E\u003C\/p\u003E\n\u003C\/div\u003E\n\n \n \u003C\/div\u003E\n\n\u003C\/div\u003E"}]