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Fundraising · Marketplace

5 questions investors ask marketplace founders

Investors who back marketplace companies ask a familiar set of questions. Here are the five that come up most, why they ask, and what a strong answer looks like on a slide.

Write my investor story freeSee the questions
INVESTORWhich side did you grow first and how?
HAATSigned 400 makers first via craft fairs
INVESTORWhat stops buyers and sellers going around you?
HAATPayments, returns and ratings stay on-platform · leakage under 5%

The five questions

Each answer is shown for our fictional marketplace company, Haat, which makes buyers and makers of handmade furniture. The numbers are illustrations. Swap in your own.

01

Which side did you grow first and how?

Why they askMarketplaces live or die on the first side.
A strong answer showsThe side you built first and the tactic that worked.
HAAT

Signed 400 makers first via craft fairs

Sample slide line · illustrative numbers
02

What stops buyers and sellers going around you?

Why they askLeakage kills take rates.
A strong answer showsThe value that keeps both on the platform.
HAAT

Payments, returns and ratings stay on-platform · leakage under 5%

Sample slide line · illustrative numbers
03

Is your take rate safe as you grow?

Why they askLarge sellers push take rates down.
A strong answer showsTake rate by seller size and the services that justify it.
HAAT

Take rate 14% · steady for top 50 sellers

Sample slide line · illustrative numbers
04

What is your liquidity?

Why they askLiquidity means buyers find what they want.
A strong answer showsShare of listings that sell, and time to first sale.
HAAT

38% of listings sell within 30 days

Sample slide line · illustrative numbers
05

Is GMV the same as revenue?

Why they askMany founders confuse the two.
A strong answer showsGMV and net revenue shown separately.
HAAT

GMV ₹4.2 Cr · net revenue ₹59 L

Sample slide line · illustrative numbers

The four numbers they check first

Before the questions, investors scan for these. Show each one by month, with dates, so the trend is easy to read.

Metric 1Gross merchandise value
Metric 2Take rate
Metric 3Repeat rate on both sides
Metric 4Liquidity: share of listings that sell

The gap that costs marketplace founders meetings

Gap

The most common gap in marketplace decks is showing GMV as if it were revenue. Fix it before you send the deck.

Know your buyer

Your customers are buyers and sellers you bring together. Name the first group you will win, and show why they pick you today.

Prepare the appendix

  • Monthly metrics for the last 12 months
  • Unit economics by customer group
  • Your answer to each question above, with sources

Questions

What do investors look for in a marketplace startup?

They start with these metrics: gross merchandise value, take rate, repeat rate on both sides, liquidity: share of listings that sell. Then they test the five questions on this page.

What is the most common gap in marketplace pitch decks?

Showing GMV as if it were revenue.

Are the numbers on this page real?

No. They are illustrations for a fictional company, Haat, to show what a strong answer looks like. Use your own numbers.

Can Astitva build my pitch deck?

Yes. Astitva writes your investor story from a short brief, in the order investors expect, and designs every slide in your brand. The written story is free.

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Answer them before they ask

Astitva writes your investor story from a short brief, in the order investors expect, then designs every slide in your brand.

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