Published On: Fri, May 8th, 2020

VC’s largest supports make large bets on straight B2B marketplaces

During a waning days of a initial dot-com boom, some of a biggest names in try collateral invested in marketplaces and directories whose solitary duty was to connect information and encourage clarity in industries that had remained ambiguous for decades.

The topic was that thousands of tiny businesses were creation specialized products consumed by incomparable businesses in outrageous industries, though a strech of smaller players was singular by their coherence on a sales structure built on conferences and personal interactions.

Companies creation pharmaceuticals, chemicals, construction materials and medical reserve represented trillions in sales, though those outrageous total numbers censor how fragmented these supply bondage are — and how formidable it is for buyers to see a extent of sellers available.

Now, identical to a approach business models popularized by Kozmo.com and Webvan in decades past have given been reincarnated as Postmates and DoorDash, a B2B office and marketplace rises from a investment graveyard.

The initial pointer of life for a office indication came with a success of GoodRX behind in 2011. The association valid that when information about pricing in a formerly ambiguous attention becomes available, it can unleash a swell of new demand.

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