Colin Gardiner is the Founder and General Partner of Yonder Ventures. Colin is a marketplace geek with a fascinating career that began at the Federal Reserve, veered into startups, and now he runs his own venture firm focused on pre-seed marketplaces. We talked about the qualities that set winning marketplaces apart at the early stage, why network effects are so hard to kill, and the future of marketplaces.
The episode is now available on Apple Podcasts, Spotify, Amazon, and YouTube Music.
Chapters
Chapters
00:00 Introduction to Marketplace Investing
03:13 Colin Gardner's Journey into Marketplaces
06:05 Understanding Network Effects in Marketplaces
08:59 Navigating Seed and Pre-Seed Investments
11:52 The Durability of Network Effects
15:12 Balancing Supply and Demand in Marketplaces
17:56 Common Pitfalls for Marketplace Founders
21:14 The Future of Marketplaces
24:04 AI's Role in Marketplace Evolution
26:56 Transitioning from Operator to Investor
29:52 Challenging Conventional Wisdom in Venture Capital
33:13 Conclusion and Call to Action
Takeaways
Colin Gardner's passion for marketplaces stems from his background in economics and labor market research.
Network effects are crucial for marketplace success, but they differ from economies of scale.
Product market fit for marketplaces is defined by actual transactions, not just product availability.
Consumer marketplaces are more appealing to investors due to their potential for widespread impact.
Established marketplaces like Airbnb and Booking.com demonstrate the durability of network effects.
Marketplace founders often fumble by focusing too much on product rather than supply and demand matching.
The future of marketplaces may involve integrating AI for better supply aggregation and matching.
Fundraising for a venture fund is more challenging than for a startup, requiring strong relationships with LPs.
Marketplaces are not inherently more capital-intensive than other business models; it depends on the environment.
Colin is actively seeking pre-seed marketplace investments and offers insights on building successful marketplace strategies.
The content here is for informational purposes only and should not be construed as investment, legal or tax advice. The opinions expressed by guests are their own and do not reflect the views of Seaplane Ventures. Our host, guests and clients may hold investments discussed in this podcast. Please invest responsibly.