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What is Marketplace Infrastructure?
Marketplace infrastructure is technology and services that help facilitate marketplace transactions
§ Marketplace Infrastructure is the often invisible layer that helps facilitate marketplace transactions. Without these
technologies and services, using such marketplaces would be unattractive to certain individuals
§ Examples of marketplace infrastructure include: payment software, background checks, liability insurance, shipping
solutions and data privacy protection
§ Additionally, marketplace infrastructure can be products and service that support those providing their services on
these marketplaces
§ Examples in this case are: revenue optimization applications, cleaning services for home rentals, tax help services for
“1099” workers, and simplified healthcare plans
Ridesharing
Management
Homesharing
Management
Privacy and
Security
Insurance PaymentsTax
Major Verticals and Sample Companies
OPUS
Source: Team Analysis
Business to Business
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Key Insights
Consumer-Focused
§ There is an increasing prevalence of people relying on Peer-To-Peer marketplaces to source full-time
work
„ The 1099 worker is an underserved demographic that is poised to grow rapidly as the benefits
and earning potential of peer-to-peer platforms increase
§ Technologies and services that provide support to individuals operating within these marketplaces
and outside the sharing economy will be most sustainable
Business to Business
§ A higher number of industry competitors contributes to a need for “portable/pluggable technologies”
and understanding consolidation trends will lead to identifying emerging winners
„ Both historical evidence and current trends point to large consolidation and the dominance of
only a few large platforms as peer-to-peer markets mature
§ Infrastructure providers whose services are cross platform are more sustainable than those that
focus on one vertical
§ Marketplaces are beginning to offer more personal/in-home transactions (Airbnb vs eBay), which has
lead to an increased demand for trust and security on their respective platforms
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1. A Shift Towards Services: The New Peer-to-Peer Paradigm
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New Peer-to-Peer Marketplaces Feature More Intimate Transactions Leading to New
Infrastructure Needs
Old P2P Marketplaces
New P2P Marketplaces
Sample Companies
§ Used for part-time income
§ Generally use one platform
§ Transactions are distant and remote
§ Low technology requirement
§ Full-time income sources
§ Driven to multiple platform - > long term consolidation
§ Personal/in-home (Airbnb)
§ Focused on services
Sample Companies
Examining the history of old marketplaces can suggest a potential future for their new counterparts
Source: Team Analysis
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Trust and Security is Paramount in the Sharing Economy and Companies are forced
to come up with Innovative Ways to Gain that Trust
Traditional Solution
Problem Solved
DogVacay SolutionHurdle
§ In order to have a successful platform,
DogVacay must provide a sense of trust
to their users
§ They achieve this through:
§ highly selective dog sitter process,
§ constant review of dog sitter performance
§ robust customer care team
§ 24 hour concierge
§ daily video and photo updates
§ dual pet insurance
§ A new Pew Research report showed that
only 19% of Millennials believe most
people can be trusted, while 31% of
GenX’ers do
§ Gaining people’s trust is essential,
especially in a marketplace that features
intimate transactions (ie. dog sitting)
Helping dog owners find the right dog sitter while taking a vacation
Expensive kennels give dogs minimal freedom, but are reliable and will keep the dog safe
Source: Forbes.com, DogVacay, Team Analysis
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2. Current Innovations: Marketplace Infrastructure
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Innovations span multiple verticals throughout the peer-to-peer value map
Other
Ridesharing
Management
Homesharing
Management
Privacy and
Security
Insurance
Payments
Tax
OPUS
Industry Breakdown
Source: Team Analysis
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Insurance & TaxesAggregators
Security & Trust
Source: Team Analysis
§ The shift toward service-based peer-to-peer networks has
increased the demand for trust and security. The
increasing imitate nature of p2p platforms like Uber and
Airbnb has created opportunities for companies to
increase security and trust between transactions
§ Companies like OPUS provide quick background checks
on rideshare drivers and homeshare renters
Payment & Shipping
Companies that Span Multiple Verticals
Identifying cross-industry applicability is key to infrastructure sustainability and platform independence
OPUS
§ Payment is one of the most pervasive and ubiquitous
services that is needed throughout the peer-to-peer
economy
§ Shipping is another subset of marketplace infrastructure
that is needed across the board as more transactional
marketplaces begin to emerge
§ Aggregators have high staying power because they are
not dependent on a single vertical and provide support to
multiple peer-to-peer platforms
§ SherpaShare is a management service for independent
contacts to aggregate analytics and metrics across
platforms like Airbnb, Uber, DoorDash etc.
§ A handful of startups are tackling the issues related to
insurance and tax preparation faced by many of the
independent contractors that power the peer-to-peer
platforms
§ As the peer-to-peer industry grows and policymakers turn
their attention to the growing number of 1099 workers,
specialized insurance and tax services will be needed
Companies that offer products and services that are applicable across multiple verticals and peer-to-peer platforms
enjoy higher levels of stability and a broader market than those that focus on a single vertical
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79%
17%
4%
Market Share via Monthly
Unique Web Traffic
Uber
Lyft
Sidecar
Ridesharing Support Companies are Largely Dependent on Uber
Highly concentrated market increases risk by limiting M&A possibilities and increasing chance of
obsolescence
§ The long term growth of businesses catering to the
ridesharing market is largely dependent on Uber,
which owns ~79% of ridesharing market share
„ This proxy for market share is consistent with
Monthly Unique iTunes Downloads
§ Because of the high concentration within this market,
the exit opportunities for companies that support
ridesharing platforms hinge largely on the actions of
Uber
§ Uber can acquire these companies, or render them
obsolete by integrating their service organically
§ Companies that provide support and ancillary services
to this market have limited exit opportunities and must
plan accordingly 80%
20%
Market Share via Monthly Unique
iTunes Downloads
Uber
Lyft
Sidecar
Source: Team Analysis
Marketplace infrastructure companies that operate in the ridesharing market are highly dependent on the growth and
actions of Uber as ridesharing is one of the most concentrated industries
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Homesharing Support Companies Currently Enjoy More Exits and Revenue Stability
Consolidation trends threaten the growth and exit opportunities the currently diversified market offers and
many companies only cater to top platforms
§ Long term consolidation is a concern:
„ HomeAway has executed 19 acquisitions of smaller
homesharing and vacation rental companies including
VRBO
„ House Trip, Wimdu and 9flats has experienced a declining
share of online traffic
„ Flipkey has experienced considerably lower growth than
that of Airbnb, VRBO, and HomeAway
§ Marketplace infrastructure companies that cater to the
homesharing market currently enjoy a larger number of
strategic buyers and revenue streams from a multitude of
platforms
„ However, Airbnb represents almost half of the market with
~42% of monthly unique visitors going to Airbnb.com
42%
22%
20%
9%
Market Share via Monthly Unique
Web Traffic
Airbnb
VRBO
HomeAway
FlipKey
House Trip
Wimdu
9flats
Industry Wide
Airbnb Only
Stability
7%
Source: Team Analysis
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42.6 43.8 45.1 46.3 47.6 48.8 50.1 51.3 52.5 53.8 55.0 56.3 57.5 58.8 60.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
1099 Workers are Expected to Surge to 40% of the U.S. Workforce by 2020
§ Although the Bureau of Labor Statistics does not
accurately and consistently track these numbers, the
federal government approximated 42.6 million in
2006
§ According to a study conducted by Intuit in 2010, the
U.S. workforce by 2020 will exhibit more than 40%, or
60 million employees, as independent contractors
§ Studies indicate that in 2015 about 34% of the
workforce or 53 million people will file some form of
1099
Definition
§ “1099 workers” are employees who fill out a tax form
titled “Form 1099,” signifying their status as
independent contractors
§ Currently, the IRS even has a 10 question
assessment that differentiates 1099 from W-2
workers, or those who are officially on payroll
Market Size and Growth Trends
Number of U.S. Independent Workers, Millions, 2006-2020
Source: Intuit 2020 Report, “America’s Uncounted Independent Workforce” by the Freelancers Union, Bureau of Labor Statistics, Reuters, Team Analysis
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Despite certain obstacles, 1099 workers can gain from an evolving landscape
Companies still take advantage of 1099 workers in regard to taxes and benefits
§ Tax laws remain disadvantageous for 1099 workers
§ Workers pay higher tax burden than employees, since for traditional employees a company
would pay half of the Social Security and Medicare taxes
§ Additionally, contractors must keep track of their own records
§ 1099 workers are also not guaranteed rights under the Fair Labor and Standards Act, which provides
systems such as minimum wage
§ Research indicates that local businesses may misclassify 10% to 60% of employees as independent
contractors for their own gain
However, increased attention from the government attracts people to 1099 status
Source: Bloomberg BusinessWeek, Fortune Magazine, Reuters, Congressional Research Service, Team Analysis
§ In 2009, six bills were introduced concerning the misclassification of employees. For instance,
the Patient Protection and Affordable Care Act included provisions on the rights of 1099 workers
§ In the coming years, these regulations will reduce federal, state and local tax gaps, decrease
government outlays for employee benefits, lead to higher worker compensation and protection,
and result in better allocation of resources
§ The improving environment coupled with the possibility of greater career flexibility and higher
earnings potential makes becoming a 1099 workers increasingly attractive
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Services for 1099 Workers Represent a Major Opportunity in Infrastructure
Current Problem
§ Mobile technology, internet access, and a shift in the generational mindset has expanded the sharing
economy
§ Companies avoid costs by employing 1099 workers, since they are not required provide tax,
healthcare, retirement or insurance benefits
§ Various new companies have sprung up that either directly cater to 1099 workers or are top
employers of this labor segment
Companies Trying to Create Solutions
Source: Fortune Magazine, Reuters
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4. Current Innovations: 1099 Support
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Current Innovations – 1099 Workers
Opportunities catered towards 1099 workers are becoming a prominent category of marketplace infrastructure
§ As the number of 1099 workers increases, the demand for companies and services that cater to independent
contractors will increase
§ Already, a large number of startups have started providing both products and services to help address the problems
independent works encounter with regards to management and tax/finances
§ Further, a small number of startups are moving beyond these two broad categories and providing unique services to
contract workers
„ For example, groove provides membership-based clubhouse for rideshare drivers to relax and recharge in-
between rides
Management Workspace Tax/Finances
Source: Team Analysis
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eBay Acquired Competitors and Infrastructure Providers
eBay’s acquisition history highlights a trend of rapid marketplace consolidation and strategic purchases
§ eBay is one of the first massively
successful peer-to-peer platforms
and its actions provide insight into
the new peer-to-peer markets like
Uber and Airbnb
§ In the last two decades eBay has
fueled a significant portion of its
growth through mergers and
acquisitions of both direct
competitors, and companies that
provide marketplace infrastructure
§ eBay’s history points to aggressive
acquisition of marketplace
infrastructure with the goals of
1. Protecting its position
2. Extending its market
segments
3. Improving its customer
relations
Target Function Value Date
Billpoint E-commerce Payment Systems - 1999
Blackthorne Listing Tool - 1999
Precision Buying Service E-commerce Payment Systems - 2000
PayPal E-commerce Payment Systems $1.5B 2002
Shopping.com Price Comparison Service $620M 2005
Meetup.com Social Networking Service $10M 2006
StumbleUpon Browser Plugin $75M 2007
Fraud Sciences Online Risk Management $169M 2008
Positronic Inc. Machine Learning - 2009
GSI Commerce Marketing/Fulfillment $2.4B 2011
Where, Inc. Search and Recommendation $135M 2011
Svpply Social Shopping - 2012
Decide.com Price-Forecasting - 2013
Braintree Payments $800M 2013
Shutl Rapid Fulfillment Service - 2013
PhiSix Fashion Labs Virtual Clothing - 2014
eBay’s Marketplace Infrastructure M&As
Source: S&P Capital IQ, Team Analysis
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PayPal vs. Billpoint in the Battle for eBay: The Risk of Reliance on a Single
Marketplace for an Infrastructure Provider
PayPal and Billpoint epitomize the highly competitive and zero-sum environment companies
face when they rely heavily on a single platform that dominates its industry
§ For a time eBay, had no built-in payment services to offer their users. To address this issues, they
acquired Billpoint, a person-to-person money transfer service
§ Because of the acquisition of Billpoint, it seemed that other payment services like PayPal, which
relied heavily on eBay transactions for business, were at a risk of being forced out of the market
and going out of business
§ However, Billpoint failed to gain traction and eBay ultimately bought PayPal for $1.5B
„ Billpoint services were soon discontinued
§ Many of the companies that support large platforms like Airbnb and Uber have the same
characteristics as PayPal and Billpoint
„ E.g. Everbooked, Guestly, Huitly, and Proprly all provide similar services exclusively to Airbnb
users
Source: S&P Capital IQ, Team Analysis
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Airbnb and Lyft: Following in the M&A Footsteps of eBay
Both companies have started acquiring competitors and infrastructure, following a consolidation trend that
closely matches that of eBay
§ Airbnb and Lyft have made a number of
purchases that closely follow the
acquisition pattern of eBay
§ However, there is greater focus on
buying companies that provide auxiliary
services to the consumer, rather than to
expand market share
„ This reflects the service-oriented
nature of the peer-to-peer market
today
§ This foreshadows a large number of
buyouts from many of the large peer-to-
peer markets as they look to provide the
best experience to their customers
„ Uber has recently made its first
acquisition (deCarta) and if this
trend holds, it can be expected to
make a number of acquisitions in
the near future
Airbnb Lyft
Pencil Lab
DailyBooth NabeWise
Fondu
Localmind
RoverCherry
Accoleo Cashpadder Hitch
MarketplaceInfrastructureCompetitors
Source: Team Analysis
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6. Looking Forward: New Marketplaces and Services
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New Platforms (Marketplaces)
Forerunners of the new sharing economy, these new platforms are primed to disrupt their industries
Company Business Focus Highlights
$2.1 Online Travel
§ A platform that connects travelers to original
experiences through native-citizen individuals
§ Currently exists in 900 cities in 100 countries, with
5000 pre-screened providers
1
$3.3 Boating
§ Driven to offset the cost of owning a boat in as many
as 1-2 rentals
§ Boat owners and lessees are pre-screened, there
have been upwards of $3.1M in insurance policy
2
$50k Online Payments § Allows individuals and organizations to create custom
online payment platforms
§ Services began focused in schools, verticals are now
expanding
3
$500k Mobile § Designed to give youth access to develop the skills
and experiences for careers
§ Considered LinkedIn and driven to combat rising
unemployment rates
4
Unknown P2P Pricing § Designed to allow makers and innovators to
determine the value of their products
§ Pricing is backed by an algorithm, marketplace is the
next step in sequence of company’s growth
5
Funding
$US Millions
Vayable
Boatbound
Cheddar-Up
Rock Your Block
The Pricerie
Source: Team Analysis
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The Product
Source: Company Website, Team Analysis
Geographic Breadth
Amazon’s recent announcement of Amazon Home Services confirms the long-term
potential of the peer-to-peer economy
§ Amazon recently launched Amazon Home Services, an online
marketplace for professional services that consists of 2.4
million individual services, 700 service options, and availability
in 41 U.S. states
§ Amazon guarantees complete customer satisfaction by doing
background checks, processing customer reviews, and
offering refunds if the customer is left unsatisfied or can find
cheaper comparable services
§ “Pros,” or those performing the service, must be invited,
vetted, and licensed in order to be registered
§ Amazon takes a base 5% transaction fee and then additional
fees range from 15-19% of the sale
Our Take
§ Amazon Home Services solidifies the company’s focus on
the peer-to-peer economy and its delve into a marketplace
for services rather than simply products
§ According to the company, over 85 million Amazon
customers are shopping for products that need
professional services, which highlights high demand and a
viable market
§ Amazon will work with marketplace providers and start-ups
such as TaskRabbit, TakeLessons and Pep Boys to ensure
the best quality, implying that the company does not intend
to completely overwhelm smaller competitors
§ The company’s new endeavor indicates how important the
sharing economy is going to be in the long run
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Future Outlook
§ There is a pressing need for increased security, privacy and trust
Craigslist is working with local police to provide “safe zones” to complete transactions
§ Following in the footsteps of Uber and Airbnb, a large number of companies will strive to create peer-
to-peer platform for industries that are still largely traditional, creating many opportunities for
marketplace infrastructure companies to innovate
„ DogVacay – Pet Services
„ Boatbound – Boat Rental
„ VoulezVousDiner – Local Eating Experiences
„ Shiphawk, Shyp – Shipping
§ The shipping vertical, in particular, has a lot of promise as it is a major pain point for many small
businesses and individuals. By making it cheaper and more convenient, players such as Shyp and
Shiphawk can take a major hold on an emerging infrastructure vertical
• As more people rely on peer-to-peer platforms as full time 1099 workers, we expect to see innovative
companies cater to the needs of these workers beyond insurance and tax services
„ Groove provides rideshare drivers an exclusive clubhouse lounge space to wait and recharge
between rides
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Final Takeaways
§ Marketplaces used to be transactional and anonymous; but as they become service
oriented (HomeJoy) and more intimate (Airbnb) trust, reputation, and security has
become a rising concern
§ Marketplace dominance is inevitable and the big players will either grow via M&A or by
building walled gardens; it's important to know each large marketplace's strategy on
long-term outlook
§ Key concern going forward is how 1099 employees will be treated legally and how to
build services that support both them and the marketplaces for which they work
§ Portability of reputation across platforms will build trust and enable more intimacy for
new marketplaces; layered social validation will also help appease trust concerns
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Contact Information
Karlin
Ventures
|
@karlinventures
Arteen
Arabshahi
|
@arteeninla
Erin
Shipley
|
@erinbshipley
TX
Zhuo
|
@txzhuo
Research
Group
Brian
HarwiK
|
blh74@cornell.edu
Clark
Zhang
|
cz254@cornell.edu
Tanner
Stults
|
jts274@cornell.edu
Zachary
BenfanS
|
zbd4@cornell.edu
Danielle
CharpenSer
|
dac362@cornell.edu
CoVenture
|
@coventurevc
Ali
Hamed
|
@alibhamed
Thatcher
Bell
|
@thatcherbell
Mike
Beller
|
@mjbeller
Jamil
Goheer
|
@jamilgoheer
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Case Studies: Marketplace Infrastructure
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Stripe
Seed-Stage start-up that offers finance and
insurance tools for independent contractors
Driven to simplify tax and insurance and overcome
barriers to entry in highly regulated markets
Headquarters San Francisco, CA
Funding $190M (after Series D)
Management
Team
• Patrick Collison, Co-Founder and CEO
• John Collison, Co-Founder and President
Founded 2010
Key Features § Simple APIs are built for developers
and reduce need to design payment
forms
§ Stripe’s tools integrate online and on
mobile devices across different
currencies and payment systems (i.e.
Bitcoin and Apple Pay)
§ Support system mitigates accounting,
fraud, security, and operational risks
Costs and Fees § 2.9% + $0.30 per successful charge
§ Extra 2% on market exchange rates
Late-stage start-up that utilizes unified APIs and
tools to enable business to manage online
payments
Provides infrastructure across various devices and
payment platforms to an international audience
Headquarters San Francisco, CA
Funding
Management
Team
Founded
Key Features
Costs and Fees
With the backing of several key investors, Stripe
maintains its position as an independent player in
the payments space
Source: Company presentation, Stripe, Team Analysis
Stripe is an established player in the marketplace
and opportunity for growth, through international
expansion, is solid
§ As a late-stage start-up, Stripe has seen growth and has
secured prominent clients such as Kickstarter, Lyft and
Shopify
§ Growth is expected to continue with investments in Stellar
(a decentralized payment network), partnerships with
Apple Pay, Bitcoin, and Twitter, and unveiling of Stripe
Connect, a service that enables anyone selling on an
online marketplace to accept credit and debit cards
§ Company could see some obstacles in international
expansion, because setting up local offices is costly and all
transactions need to be converted into U.S. dollars
Product DescriptionBasic Overview
Investors Our Take
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Checkr
Product DescriptionBasic Overview
Seed-Stage start-up that offers finance and
insurance tools for independent contractors
Driven to simplify tax and insurance and overcome
barriers to entry in highly regulated markets
Headquarters
Funding $9.12M (after Series A)
Management
Team
• Jonathan Perichon, Co-Founder
• Daniel Yanisse, Co-Founder
Founded 2014
Key Features § The mobile friendly format of Checkr
allows clients to screen candidates
quicker and hire faster
§ Color-coded dashboard and simplicity
of reports make evaluation simple
§ Simple API of Checkr provides easy to
understand data in a formerly
undisrupted industry
Costs and Fees § Standard package: $25/month
§ Pro package: $35/month
Product DescriptionBasic Overview
Series-A start-up automates the process of
professional background checks
With reports that return in less than 24 hours,
Checkr hopes to quicken the professional
background check process
Headquarters
Funding
Management
Team
Founded 2014
Key Features
Costs and Fees
Investors
Start-up should expect to see growth through its
use of API technology
Source: Company presentation, Checkr, Team Analysis
Our Take
With innovative idea and significant market
demand, Check’s growth is evident but it should
broaden its market to scale further
§ The company is currently processing about 10,000
background checks per month; the niche market provides
ample opportunity for Checkr to grow and disrupt the
marketplace
§ However, clients are limited to only those who are doing
background checks for commercial purposes
§ Checkr is hoping to cater not only to workers in the
“sharing economy” but also to independent contractors
§ The ability to scale depends on the how quickly clients
sign on new contractors, but by utilizing modern API (in
lieu of customer support) Checkr can grow rapidly
San Francisco, CA
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Proprly
Seed-Stage start-up that is driven to capture
cleaning and key delivery services to the
homesharing marketplace
Headquarters New York City, NY
Funding Undisclosed (Seed)
Management
Team
• Randy Engler, Founder and CEO
Founded January, 2013
Provides verified cleaners that are ready to go at a
moment’s notice
Key Features § Offers trusted, reliable, on-demand
cleaning and key delivery services for
hosts of Airbnb, HomeAway and
VRBO
§ Operates under premise of “best
rental feels like a home and runs like
a hotel”
§ Currently only services Manhattan
and Brooklyn
Costs and Fees § Charges a flat rate of $40 for
delivery
§ Charges $125 for standard cleaning
of 1BR complex
Proof-of-concept stage company with gaining
traction in collaborative marketplace
On-the-rise company that has been wonderfully
reviewed, but stands to gain from scaling
§ Innovative concept that capitalizes on the new economy
and P2P marketplace in the housing industry
§ Future consolidation trends could potentially threaten the
existence of the company
§ As of now, company is heavily reliant on market built up by
Airbnb and is using a referral system to identify and
capture customers
§ Crux of company is security and ensuring that cleaners
and key deliverers are properly background-checked
§ Clear-cut and straightforward pricing model
§ Challenge is going to be expanding outside of NYC metro
Source: Company presentation, Proprly, Team Analysis
Product DescriptionBasic Overview
Business Partners Our Take
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Zen99
Seed-Stage start-up that offers finance and
insurance tools for independent contractors
Driven to simplify tax and insurance and overcome
barriers to entry in highly regulated markets
Headquarters San Francisco, CA
Funding $2.6M (3 Seed Rounds)
Management
Team
• Yan Lhert, Co-Founder and CTO
• Tristan Zier, C0-Founder and CEO
Founded 2014
Key Features § Tracks finances, estimates/minimizes
taxes and secures insurance in light of
growing regulations
§ Available on any tech device
§ Identified a need with the rise of
independent contractors, is aiming to
alleviate the grunt work
§ Focuses on retaining earnings and
locating affordable healthcare plans
Costs and Fees § Commission-based
Seed-Stage start-up that offers finance and
insurance tools for independent contractors
Driven to simplify tax and insurance and overcome
barriers to entry in highly regulated markets
Headquarters San Francisco, CA
Funding $2.6M (3 Seed Rounds)
Management
Team
• Yan Lhert, Co-Founder and CTO
• Tristan Zier, C0-Founder and CEO
Founded 2014
Key Features § Tracks finances, estimates/minimizes
taxes and secures insurance in light of
growing regulations
§ Available on any tech device
§ Identified a need with the rise of
independent contractors, is aiming to
alleviate the grunt work
§ Focuses on retaining earnings and
locating affordable healthcare plans
Costs and Fees § Commission-based
High-potential and ceiling company poised to
continue its nationwide expansion
Source: Company presentation, Zen99, Team Analysis
Opportunely-launched company in climate of 1099
workers, quantifiable room for sustained growth
§ Proprietary dashboard that simplifies taxes and insurance
is the key ingredient and metric for growth
§ Currently sees 3 strong competitors in the market
§ Tools are available nationwide, but insurance features are
restricted to healthcare in California
§ Zen99 University, referrals and partnerships steers a lot of
the traffic that the company has seen to date
§ Very solid model of collecting commission from insurance
and defraying those funds to free tax management tools
§ Biggest challenge is education and staying attuned to
changing regulatory compliance policies
Product DescriptionBasic Overview
Investors Our Take
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Benny
Product DescriptionBasic Overview
Seed-Stage start-up that is looking to revolutionize
the freelancer’s back office
Founded by an independent worker for independent
workers
Headquarters New York City, NY
Funding Undisclosed (Seed)
Management
Team
• Jacob Brody, Co-Founder and CEO
• Luciano Cheng, Co-Founder
Founded Unknown
Key Features § Offers insurance, accounting and tax
support for those self-employed
§ Targets both marketplace companies
as well as platforms
§ Has focused so far on drivers,
cleaners, writers, caterers,
photographers and carpenters
Costs and Fees Undisclosed
Seed-Stage start-up that is looking to revolutionize
the freelancer’s back office
Founded by an independent worker for independent
workers
Headquarters New York City, NY
Funding Undisclosed (Seed)
Management
Team
• Jacob Brody, Co-Founder and CEO
• Luciano Cheng, Co-Founder
Founded Unknown
Key Features § Offers insurance, accounting and tax
support for those self-employed
§ Targets both marketplace companies
as well as platforms
§ Has focused so far on drivers,
cleaners, writers, caterers,
photographers and carpenters
Costs and Fees Undisclosed
Infancy-stage company currently seeking
institutional investments beyond seed stage
Interesting idea and concept, will be critical to scale
the core competency of the company
§ Essentially the virtual ops manager for the self-employed
§ Sells itself as taking care of the “boring stuff” so the
individual worker focuses on nature of work, not behind-
the-scenes operations of the company
§ Extremely young, still too early to forecast a trajectory of
growth
§ Aiming to capitalize on the rise of freelancers in the new
US economy
§ Revenue model as it stands is ambiguous to potential
clients
§ Must establish a clear-cut set of industry verticals
Source: Company presentation, UseBenny, Team Analysis
Product DescriptionBasic Overview
Investors Our Take
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Research Approach
§ We conducted a top-down analysis of Marketplace Infrastructure to determine the key
salient sources of innovation, and profiled several major technological disruptors
§ Our data sources include relevant start-up founders and employees, primary research,
and proprietary databases
§ Our analysis encompasses the following areas:
„ An analysis of key difference between the old and new peer-to-peer markets
„ Types of existing innovation
„ Selected company profiles of existing innovations
„ Current marketplace dynamics
„ Potential for further innovation in the future