One reason why conceiving a marketplace business is so seductive to entrepreneurs is the possibility of sitting back and watching the money roll once you’ve acquired enough businesses and customers. However, marketplace businesses are notoriously difficult to launch, a point emphasized by Erin Bali, co-founder and chairman of Udemy, at an Echelon 2014 talk:
Why would you even start a marketplace business? It’s f---ing hard to start one and you will hate the life for a long time. But there is still a good reason: because you have to.”
Eren Bali is also the Co-Founder and CEO of Carbon Health, a primary care network. He is a Graduate of the Silicon Valley Founder Institute, and an inductee in Forbes Magazine’s third annual "30 Under 30".
According to Bali, marketplace businesses function as veritable ecosystems, solving problems that technology alone cannot, and elaborates on the fundamentals entrepreneurs must keep in mind when launching a potentially prosperous marketplace business.