Startup Funding Espresso -- Marketplace Metrics
Marketplace Metrics\xa0 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.\xa0 Concentration - measures how fragmented or concentrated the buyers or sellers are.\xa0\xa0 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\u2019s 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\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Please , share, and leave a review. Music courtesy of .