Multi-sided platforms are the superior way of doing business today. This content will help you define a marketplace business with the network effect. All network orchestrators must perform well at least 4 functions listed in this presentation.

1. Multi-Sided Platform Strategies
for Startups
By Gustavo Carriconde

2. https://startupspace.io/follow
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3. 1- Definition of platform business model
2- How to design a platform
3- The functions of platforms
Summary

4. 1- Definition of platform
business model

5. Books to read about platforms
Please visit our Youtube channel to watch relevant content
about platforms

6. Plot of land
Platform concept is not new. Any
marketplace connecting producers
and consumers is considered to be
a platform.

7. 19751968 19761911
PERSONAL
COMPUTER
1994
SOFTWARE
AND SERVICES
1994 1995 1995 1998 1999
SOCIAL
MEDIA
2002 2003 2004 2006
2008
PLATFORM
SHARING
ECONOMY
2009

8. There are many different types of
platforms. We will use the definition
of platform as a business model.

9. Pipeline Business Model
RAW
MATERIALS
COMPONENT
MANUFACTURE ASSEMBLY
SUPPLY DEMAND

10. Platform
Audience building
Matchmaking
Tools and services
Rules and standards
SUPPLY DEMAND
searchPlatform Business Model

11. SUPPLY side
PlatformPipeline
DEMAND side
OWN the assets
Linear value chain
Optimize supply chain
DO NOT OWN the assets
Multi Sided value creation
Enable interactions

12. “A platform is a business model that:
creates value by enabling
INTERACTIONS between two or more
groups, usually PRODUCERS and
CONSUMERS.”
Alex Moazed

13. PRODUCERS CONSUMERS
APIs
Modules ML AI SOFTWARE
ARCHITECTURE SERVERS
APIs
TECHNOLOGY IS NOT ENOUGH TO
HAVE A PLATFORM

14. 13 Bi in content in 2018

15. Watch the video below to understand how platforms
are changing human behavior.
https://youtu.be/Z7IBMX5bdik

16. NETWORK EFFECT
"A phenomenon whereby a product or service
gains additional value as more people use it."

17. $$
$ $
$
$ $
$
$
NETWORK
EFFECT

18. NETWORK EFFECT
brings...
User #1000 will bring value
to user #1
CAC
Revenue per user
Retention
Defensibility
MARKETPLACE LIQUIDITY
"Reasonable EXPECTATION of
selling something you list or
finding what you're looking for"
Simon Rothman, Greylock

19. GROUP A GROUP B
STRONG NETWORK EFFECT WEAK NETWORK EFFECT

20. VIDEOS EXPLAINING THE NETWORK EFFECT

21. NETWORK
EFFECT
low marginal
cost
CRITICAL
MASS
Strategy

22. 2- How to design platforms?

23. copy
PLATFORM A PLATFORM B
NO NETWORK EFFECT

24. ENABLING INTERACTIONS
DESIGNING FEATURES

25. Information
Goods/Digital content
Currency
Services
Exchanges
INTERACTIONS Sequence of EXCHANGES

26. Information
Goods/Digital content
Currency
Services
ExchangesINTERACTIONS
Takes place inside the platform

27. Information
Goods/Digital content
Currency
Services
ExchangesINTERACTIONS
Inside the platformOutside the platform

28. Information
Goods/Digital content
Currency
Services
ExchangesINTERACTIONS
Outside the platform

29. Information
Goods/Digital content
Currency
Services
ExchangesINTERACTIONS
❏ Credit card
❏ Paypal
❏ Bitcoin
❏ Cash
❏ Attention
❏ Fame
❏ Influence
❏ Reputation
Monetary Payments Intangibles

30. Information
Goods/Digital content
Currency
Services
ExchangesINTERACTIONS
Monetary payment
Producers Consumers
platform

31. Information
Goods/Digital content
Currency
Services
ExchangesINTERACTIONS
ATTENTION
Producers Consumers
platform

32. 1- Define the PARTICIPANTS and VALUE TO BE
EXCHANGED
Platform Design
2- Design the CORE INTERACTION
3- Execute the PLATFORM FUNCTIONS to enable the core
interaction

33. 3- Execute the PLATFORM FUNCTIONS to
enable the core interaction
1- Define the PARTICIPANTS and VALUE TO BE EXCHANGED
Platform Design
2- Design the CORE INTERACTION
CONSUMERSPRODUCERS
Taxi ride Passengers
Video creators Viewers
Sellers Buyers
Hosts Guests
Drivers
Video
Goods
Stays

34. COMPENSATECONSUME
3- Execute the PLATFORM FUNCTIONS to
enable the core interaction
PRODUCE TRIGGER
Creator uploads the
video
Viewer searches and
finds the video
Viewer selects and
watches the video
Viewer likes the video
and/or subscribes to the
channel
1- Define the PARTICIPANTS and VALUE TO BE EXCHANGED
Platform Design
2- Design the CORE INTERACTION
PRODUCER CONSUMER

35. Video
Product listing
Drivers profile
Accommodation
listing
INVENTORY
"Marketplace Liquidity"

36. 3- Execute the PLATFORM FUNCTIONS to
enable the core interaction
PRODUCE TRIGGER CONSUME COMPENSATE
Passenger is transported
to the destination
1- Define the PARTICIPANTS and VALUE TO BE EXCHANGED
Platform Design
2- Design the CORE INTERACTION
Passenger makes the
payment and review
Driver becomes available Passenger creates a ride
request

37. 1- Define the PARTICIPANTS and VALUE TO BE EXCHANGED
Platform Design
2- Design the CORE INTERACTION
3- Execute the PLATFORM FUNCTIONS to
enable the core interaction
Start with the
PRODUCER PRODUCER or
CONSUMER starts
the FIRST
EXCHANGE
VALUE is delivered to
the CONSUMER by
the PRODUCER.
Inside or outside the
platform
CONSUMER pays the
PRODUCER with the
exchange of some
CURRENCYINVENTORY
PRODUCE TRIGGER CONSUME COMPENSATE

38. 3- The functions of platforms

39. Functions of a platform
Audience Building
Rules and standards
Matchmaking
Tools and services
Core interaction

40. Functions of a platform
Audience Building
Rules and standards
Matchmaking
Tools and services
PLATFORM
CONSUMERS PRODUCERS
Marketing channels
Offline channels
Case studies

41. Functions of a platform
Audience Building
Rules and standards
Matchmaking
Tools and services
Artificial
intelligence
Relevant
DATA

42. 3 BILLION VIDEOS
"We believe that for every
human being on earth, there's
100 hours of Youtube that they
would love to watch."
YouTube's director search engineer,
Cristos Goodrow

43. Matchmaking

44. Matchmaking

45. Matchmaking

46. Matchmaking

48. Matchmaking

49. 2004
2009
2019
Top 5 companies by market cap are platforms

50. What we learned today
Pipeline x Platform
Network effect
Platform design
Interactions are
exchanges
Core interaction
Platform functions
1- Participants and value
2- Core interaction
3- Perform platform functions
1- Audience building
2- Matchmaking
3- Tools and services
4- Rules and standards
1- Information
2- Goods/digital content
3- Services
4- Currency
1- Produce
2- Trigger
3- Consume
4- Compensate

51. Enable interactions

52. Produce Trigger Consume Compensate
How the PRODUCER
creates
PRODUCER or
CONSUMER starts
the FIRST
EXCHANGE
VALUE is delivered to
the CONSUMER by
the PRODUCER
CONSUMER pays the
PRODUCER with the
exchange of some
CURRENCYINVENTORY
Define:
PRODUCER
CONSUMER
INVENTORY
FIRST EXCHANGE
VALUE
CURRENCY
CORE INTERACTION

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