Marketplaces Expand Services

Shaan Puri explains how successful marketplaces naturally evolve into "market networks," using AngelList as a prime example. He sees this as a crucial business concept that helps identify valuable investment opportunities.

• Market Network Evolution:

  • Starts as simple marketplace (connecting buyers/sellers)
  • Expands to related services (jobs, investments)
  • Every connection involves monetary transactions

• AngelList Example Path:

  • Started connecting startups and investors
  • Added jobs marketplace for startups
  • Created tools for entrepreneurs to become investors
    • Rolling funds
    • SPVs
    • One-click investment capabilities

• Key Difference from Regular Networks:

  • Regular networks: connections are messages/likes
  • Market networks: connections are monetary transactions
  • Example: Facebook (social) vs AngelList (financial)

• Investment Implications:

  • Market networks are valuable investment opportunities
  • Shaan invested in MicroAcquire because he recognized it as a market network
  • Recommends studying market networks (particularly James Currier/NFX content)

• Business Strategy:

  • Important concept for entrepreneurs to understand
  • Helps identify good opportunities to start or invest in
  • Pattern can be replicated across different industries

This concept is described by Shaan as "pretty important" but "not widely discussed" outside of specific circles like NFX.