Marketplace Startups

MyTime is a two-sided marketplace and SaaS platform connecting consumers with local service businesses. The company operates a marketplace that takes a 40% commission on new customer acquisitions, plus MyTime Scheduler, online booking software designed to help businesses acquire, book, and retain customers. The platform serves over 2.5 million nearby businesses with approximately 1 million monthly visitors.

Snap Wire is a marketplace platform that disrupts traditional stock photography by allowing photographers to submit images directly to branded photo challenges/requests rather than relying on keyword searches. Founded by Chad Newellen in July 2014, the platform takes a 30% commission on direct sales (photographers keep 70%) and 50% on library sales through partners like Getty Images and Corbis. By July 2014, the company was selling approximately 600 photos per month at an average price of $800 per image, generating roughly $40k in monthly revenue.

Bellhops is a tech-enabled marketplace connecting DIY movers with local, vetted college athletes who provide affordable moving and lifting help at $40/hour. Operating in 128 US cities with nearly 5,000 active service providers and processing 3,000-5,000 bookings weekly, the company has raised $8M+ in funding (including a $600K seed from Lampus Group and a $6M Series A led by Binary Capital).

Growth Geeks is a marketplace that connects businesses with pre-vetted marketers and growth hackers for hire on-demand, either part-time, full-time, or gig-based. Launched in private beta in January, the platform reached public launch about three months later and now does $55,000 in monthly recurring revenue with over $250,000 in total revenue since launch. The platform takes 25% commission on gigs, with contractors keeping 75%, and has grown to a 5-person team while being accepted into the Techstars Chicago accelerator program.

Lawn Starter is a two-sided marketplace that simplifies lawn care ordering for homeowners while providing backend infrastructure for local lawn care providers. Founded by 23-24 year old Ryan Farley (who left a $100k Capital One job) and Steve (who dropped out of Virginia Tech), the company reached over 2,000 customers across DC, Austin, and Orlando within ~2 years, generating ~$500k in annual revenue with $7.25M in funding.

Onboy is an on-demand food delivery app exclusively focused on the college market, founded by 20-year-old Anthony Zhang. The company has processed nearly 10,000 orders and generates just over $10k in monthly revenue with 45% month-over-month growth, powered by a 100% student delivery workforce and exclusive restaurant partnerships that allow deliveries in under 30 minutes. Anthony pitched Mark Cuban and got funded $100,000 on the spot, and is part of the 500 Startups batch in Mountain View.

Chad Whitman is a serial entrepreneur who first built Edranck Checker, a Facebook analytics tool that grew to $60K MRR before selling to Social Bakers for approximately $2.8M in 2014. He then co-founded Dolly, an on-demand moving marketplace that leverages pickup truck owners as a unique asset class, raising $1.7M seed and $8M Series A (valuation ~$50M range) by taking a 20% cut of jobs on the platform.

Tom Hunt is a 26-year-old founder who left his job at Accenture in 2015 to launch Virtual Valley, a marketplace connecting entrepreneurs with vetted virtual assistants from the Philippines. The platform charges a 20% markup on assistant salaries ($500-$1,000/month per assistant) and offers recruitment, payment escrow, and time-tracking software. Tom projects $7,000 MRR by February 2016 and aims to build to $15,000 MRR by year-end, with a long-term goal of selling the company for $4 million.

Vroom is an online used car retailer founded by Alon Block in August 2013 that sells cars directly to consumers, buys cars from consumers, and facilitates financing entirely online. By January 2016, just 2.5 years after launch, the combined business (which acquired Texas Direct Auto in late 2015) generated $900 million in revenue with approximately 500 employees, growing from essentially zero through operational excellence, software-driven reconditioning processes, and a focus on high-volume, efficient business model similar to Amazon and Costco.

Borrowell is a Canadian online marketplace lender connecting borrowers with lenders through a proprietary platform. Founded about a year before this interview (circa 2015), the company raised $5.4 million in seed funding and was approaching a significant Series A round. Their growth strategy centers on an innovative product-led approach using a rate-checker widget as their primary customer acquisition tool, exemplifying the "engineering is marketing" principle.

DealFlicks is a Priceline-style marketplace for discounted movie tickets, partnering with over 600 US theaters (including 13 of the top 50 chains) to sell empty seats at up to 60% off. Founded by Sean Wycliffe in late 2010, the company generates a ~$2.4M annual revenue run rate with 2x year-over-year growth, selling roughly 100,000 tickets and concession packages monthly at an average price of $15. Growth is driven primarily through SEO (people searching for movie deals), AdWords, and affiliate partnerships, with DealFlicks keeping 15-20% of transaction value while theaters capture the remainder.

SoundBetter is a two-person marketplace connecting self-producing musicians with freelance audio professionals (including Grammy winners) to help them complete professional-quality songs. As of June 2015, the company achieved an $800k annual run rate through a two-sided commission model: freelancers pay $4 per proposal and 5% of completed job value. Their primary growth driver is organic search traffic, bringing in approximately 30,000 unique monthly visitors searching for audio production services.

Spring Leap is a marketplace of 180,000 advertising agency experts offering faster market research and creative testing compared to traditional firms. Founded by serial entrepreneur Iran Ayel, the company launched an MVP in January 2015, generating $20,000 in the first month and scaling to highs of $100,000 per month by the time of this interview. The business charges $50-$150 per expert per hour with markups, and has attracted enterprise clients like Unilever and Sony while preparing to raise a $2.5M seed round at an $8M pre-money valuation.

GNAP is an app promotion marketplace from Barcelona that connects app developers and advertisers with bloggers and content creators who promote mobile apps on a cost-per-install (CPI) basis. Founded by Gina Tost, the company processed $750,000 in advertiser spending in 2015 and generated approximately $320,000 in revenue by taking a 30% commission. The company grew entirely through word-of-mouth with no paid marketing spend, and was raising $500,000 at a $5M post-money valuation to scale their operations.

YouStake is a marketplace where fans can buy equity stakes in professional poker players competing in live tournaments. Launched in June 2015, the platform has processed $2.8 million in stakes from 335 poker players and attracted 1.4 million in pledges from 2,700 users, generating approximately $70,000 in revenue through an 8% commission (5% to YouStake, 3% to payment processors). The team is targeting 50,000+ users and 20% month-over-month growth to hit a Series A by end of 2016.

Phenom is a community platform for young athletes (13-18) to share their athletic gear and game stories, launched in September 2014 by college athlete Brian Vernon and co-founder Mike. With 60,000 registered users and 25,000 monthly actives, they've built a B2B2C model where brands like Wilson Sporting Goods pay for grassroots athlete product feedback and consumer behavior insights. The team raised $700k and operates lean with a 4-person core team in San Francisco through 500 Startups Batch 16.

Open Sponsorship is a two-sided marketplace connecting brands to athletes and sports sponsorship opportunities. Founded by Ishwin Anand (Forbes 30 Under 30), the company grew from a free marketplace to a subscription-based model, generating ~$10K MRR in February 2016 with 25 paying brand customers and 700+ registered users. The founder aims to reach $240K MRR (~$3M ARR) by end of 2016 through building a trained sales team.

June is a recruiting marketplace founded by serial entrepreneur Lane Campbell that connects recruiters with candidates willing to take calls for payment. The platform addresses the high cost of hiring (which Lane found had ballooned to $26,000 per hire) by letting recruiters search for candidates by skill and location, then pay them directly for phone interviews. Though the initial launch between August-November 2015 didn't resonate with the technical community as hoped, Lane is relaunching with new partnerships and positioning the platform as a solution to the broken recruiting economy.

Lenda is an online marketplace lender founded by Jason Vandenbrand in October 2013 that streamlines mortgage refinancing for consumers in California, Washington, and Oregon. By January 2016, the company had originated over $70 million in loans with zero defaults, generating $1.5 million in revenue in 2015 by earning 1-1.5% margin per loan. The company uses automated underwriting technology to predict required documentation upfront, dramatically reducing the typical 60-day mortgage process and cutting consumer costs by eliminating traditional loan officer commissions and lender fees.

Italist is a luxury e-commerce marketplace founded in 2014 that connects Italian boutiques with global customers, operating in 85+ countries. By January 2016, the company had achieved $10M in annual transaction volume with $250K in monthly gross margin on approximately 2,000 monthly customers spending $500-600 per order, with 30% of traffic driven by affiliates. The company raised over $1M in seed funding including investment from 500 Startups and was approaching Series A at a $40M pre-money valuation.