The Market 100: 2022 | Future

0
412


2022 marks our third yr releasing the Market 100, a rating of the biggest consumer-facing market startups and personal corporations. 

After we began this collection in early 2020 (based mostly on information from 2019), we had no means of realizing how unstable the following few years can be. Many companies had been briefly shuttered by covid, particularly in classes like journey and childcare. Different classes, like on-line training and grocery supply, skilled unprecedented spikes in exercise. All through all of it, {the marketplace} mannequin endured. 

Listed here are the highlights from the third version of the Market 100, which we’ll unpack intimately beneath: 

  • Unprecedented turnover exhibits that early stage marketplaces are as related as ever. Nineteen corporations “graduated” (versus 10 final yr), on account of 5 IPOs, three SPACs, and 11 acquisitions. There have been additionally 37 “freshmen,” 48% greater than final yr
  • #1 Instacart’s ascendency in a “winner takes most” class could also be exhausting for the following era of market giants to duplicate opening up extra room on the prime!
  • Reside procuring app Whatnot had the most important YoY record soar ever, shifting up 73 spots into #26, and contributing to the Collectibles class’s break-out yr. 
  • Ticketing, Meals & Beverage, and Schooling noticed essentially the most new entrants, because of a “covid bounceback” the place customers adjusted to a brand new regular. Vaccine rollouts had been significantly carefully correlated to restoration in classes like Childcare and Ticketing. 
  • For some classes, although, quarantine created lasting habits. Specifically, the Video games and Purchasing/Collectibles classes noticed sustained progress, shifting past earlier pre-covid baselines.
  • Bonus: whereas not included on the Market 100 record, NFT marketplaces exploded in 2021. We checked out all-time market quantity for the highest NFT marketplaces, with OpenSea main at $23.5B all-time, per Dapp Radar.

Although Instacart continues to dominate on the prime slot on the record, all of this turnover begins to trace at the true story in marketplaces this yr and going ahead. The place does the following Instacart, Airbnb, Uber, or Lyft come from? Who shall be within the subsequent era of market giants? 

Whereas it’s too early to say, 4 classes have emerged from 2021 as ones to look at: Ticketing and Experiences; Purchasing and Commerce; Video games; and the rising world of web3 marketplaces. 

A notice on our methodology

This yr, we’ve expanded our metric for measuring market efficiency. In prior years, the rating has been solely based mostly on Gross Merchandise Worth (GMV), which is extrapolated from the entire {dollars} customers are spending in opposition to every firm, per Bloomberg Second Measure information.

In 2022, the rankings are based mostly on a market exercise rating for every firm that features GMV, per Bloomberg Second Measure (for corporations that Bloomberg Second Measure tracks), in addition to Apptopia information for app efficiency and SimilarWeb information for web site visitors. All through this piece, when analyzing firm or class efficiency for 2021, we’ll discuss with “market exercise,” as per our expanded metric. The place acceptable (corresponding to when discussing developments from previous lists, for instance), we’ll typically discuss with GMV explicitly and particularly. For extra on methodology, please go to the Methodology part beneath.

The Market 100 Checklist

The third version of the Market 100 uncovers the highest corporations and classes of the yr, and in addition highlights how every startup’s rating has modified since 2021. [Download the full list]

Rank Firm Class Location YoY Change Web site

2020 to Right now: Freshmen and Graduates

This yr’s Market 100 noticed an immense quantity of change. For starters, there have been extra corporations exiting through acquisition or IPO (“graduates”) than ever earlier than. Nineteen corporations from final yr’s Market 100 graduated, in comparison with a complete of 10 graduates throughout 2020 and 2021, a rise of 80% YoY. Eleven of the 19 had been acquired, as consolidation was a giant theme throughout classes, with many corporations being acquired by different marketplaces.

This yr’s record additionally noticed 37 “freshmen” break into the Market 100 for the primary time, in comparison with 25 freshmen final yr. The expansion in new entrants was pushed by the excessive commencement fee and a few “drop outs.” What was on the root of this? A mixture of a covid rebound (and in some instances, a post-covid decline), and significantly lively monetary markets. 

This has opened up new alternatives for the following era of marketplaces.

List of Marketplace 100 freshmen and graduates

From a strategy perspective, we had been additionally in a position to embody corporations that will have made the record in 2020, however weren’t but lined in our varied information units. We anticipate each annual record will embody a couple of corporations that fall below this standards, resulting in some high-ranking debuts!

Whereas Instacart continues to guide the record, the following wave of market giants might not share the identical “winner take most” dynamics

For the previous two years, the Market 100 has been dominated by one firm: Instacart. Instacart made up a whopping 71.5% of your entire Market 100 record’s GMV final yr, and represents 64.2% of market exercise this yr. No different Groceries firm ranked within the prime 50, and the 2 others within the class that made the record every noticed 0.1% (or much less!) of Instacart’s market exercise. 

Not all classes function this manner. Take Journey, for instance. Within the first Market 100 two years in the past, the highest firm, Airbnb, accounted for under 38% of GMV. A aggressive journey firm, Vacasa, additionally made the highest 10, in addition to a spread of corporations serving to customers e-book several types of lodging, like Outdoorsy, RVShare, Vacatia, and extra. And this yr, despite the fact that Airbnb and Vacasa are actually public and rising corporations, a competitor — Evolve — cracked into the highest 20. 

What accounts for this distinction? In some classes, {the marketplace} dynamic tends to be “winner takes all” — or not less than “winner takes most.” This determines whether or not or not the class can assist many billion-dollar corporations, or only one or two at a time. When you will have a “winner takes all” firm on the prime of the Market 100, it’s more likely to “swallow” up the income of a lot of the remainder of the record!

Groceries is one instance that tends to be “winner takes all.” It’s tougher to multi-tenant on the availability facet, which means that suppliers can solely provide their merchandise in a couple of locations at a time. There may be friction concerned in getting a grocery retailer’s hundreds of things of stock onboard, continuously refreshing them, and fulfilling orders from a retailer.  

And whereas pricing might be barely totally different on totally different marketplaces, there’s a set (and pretty restricted) variety of grocery shops to onboard that make up most {dollars} spent. Provide is pretty concentrated — working with a couple of massive grocers delivers the overwhelming majority of what the typical shopper wants. 

What are another examples of doable “winner takes most” classes — and due to this fact, classes which have an opportunity of manufacturing one other Instacart? Under are classes which have just one firm on the record (for now).

Categories with one company in the Marketplace 100

A few of these classes lack the multi-tenanting and excessive provide focus that may create a “winner take most” consequence, whereas others may want extra time to develop rivals that may problem the incumbents.  

This yr’s three classes to look at — Ticketing and Experiences; Purchasing and Commerce; and Video games — are inclined to look extra like Journey than Groceries, particularly with the entire addressable market (TAM) tailwinds in a post-covid world (extra on that beneath). These classes have a big and diversified TAM, and may possible assist a number of market giants.

The most important record movers got here from Purchasing and Experiences

This yr, even accounting for the change in methodology, there was one clear winner when it comes to motion up the record. Whatnot, a market for collectibles resale, noticed the biggest one-year achieve within the rankings in Market 100 historical past. It climbed from #99 final yr to #26 this yr — greater than thrice another firm on the record. Whatnot is for the second straight yr the fastest-growing Market 100 firm.

This got here as U.S. customers started to embrace livestream video procuring, and Whatnot expanded past its preliminary class of Funko Pops into buying and selling playing cards, sports activities playing cards, comics, and extra. Whatnot’s progress is emblematic of the bigger progress of livestream promoting. In a yr the place many had been desperate to get out of their houses and again to in-person actions, Whatnot’s continued blistering progress is proof that with or with out quarantine, dwell procuring and area of interest gathering are right here to remain.

{The marketplace} that noticed the second highest rankings change was additionally within the Purchasing class. Curated (#54) powers a next-gen commerce expertise that matches customers with consultants to buy in particular classes, beginning with sports activities. 

The remaining three greatest movers are all within the Expertise area, showcasing how customers have adjusted leisure spend post-COVID. ResortPass (+20 spots) permits customers to e-book day passes to resort facilities, GameTime (+20 spots) allows reserving of last-minute tickets to sports activities video games and concert events, and Boatsetter (+17 spots) is a rental market for boats.

Marketplace 100 2022: Biggest Movers YoY

Newcomers reveal alternative in Ticketing and Meals & Beverage

A 3rd of this yr’s new entrants fell into two classes: Ticketing and Meals & Beverage. Inside these classes, the very best rating new entrants had been #11 Peek, a market for customers and firms to e-book experiences, and #13 Goldbelly, a platform for connoisseur meals manufacturers to supply nationwide supply. 

A number of of the quickest rising corporations of the yr, measured by enhance in market exercise, had been within the Ticketing class. As vaccines rolled out throughout the nation, customers seized the chance to assemble at sporting occasions, concert events, and festivals. Cube, Tixr, Fever, TodayTix, and TickPick appeared on the record for the primary time, becoming a member of corporations like ViaGoGo and SeatGeek, which each ranked within the prime 5.

Marketplace 100 2022: Freshman Distribution by Category

Even with Instacart atop the record for the second yr in a row, new Meals & Beverage marketplaces began to achieve traction. With (some) corporations attempting to lure staff again to the workplace with further perks, catering marketplaces noticed booms. ezCater moved up 5 spots to #25, and was joined by freshmen Fooda and LunchDrop. 

Then again, customers nonetheless working remotely continued to strive new at-home meals choices: freshmen on this class included Goldbelly (#13), EatStreet (#22), and CookUnity (#49). 

One other prime class this yr for freshmen corporations? Schooling. Although some faculties returned to in-person studying in 2021, the impression of a lot time away from the classroom continued to reverberate for academics, college students, and fogeys. 

Trainer stress and burnout have hit report highs, as educators wrestle to assist college students get again to a pre-COVID trajectory, in addition to take care of new behavioral points. This has boosted the expansion of web sites like TeachersPayTeachers (which debuted at #8 this yr), which permits academics to purchase lesson plans and different instructing supplies from one another. 

On the coed facet, Preply and Studypool additionally debuted as freshmen on this yr’s record. Each marketplaces permit college students to get further assist from tutors.

Vaccine charges had been carefully correlated with a resurgence of a number of massive classes

2021 was a story of two eras: pre- and post-vaccine. As vaccines rolled out nationwide, many classes noticed dramatic reversals in exercise from 2020. Classes that had been crushed by covid surged again to regular, whereas others that noticed boosts on account of quarantine fell again to earth.

The perfect instance of this got here (once more) from the Ticketing class. In 2020, complete GMV for the Ticketing class fell by greater than 50%, putting it within the backside three classes by efficiency. In 2021, Ticketing noticed an enormous comeback, rating because the #1 class when it comes to change in market exercise for 2021. But it surely didn’t begin out that means: Virtually 40% of market exercise in Ticketing occurred in This fall alone, as nationwide vaccination charges approached 70%. 

Incumbents Viagogo (#3), SeatGeek (#4) and Gametime (#20) all used this resurgence to leap a number of spots on this yr’s record. We additionally noticed six newcomers within the Tickets area. A couple of highlights are Fever (#23), which focuses on curating the most effective native experiences in main cities, and Cube (#51), which focuses on offering tickets to digital occasions, livestreams, and a few IRL occasions.

Childcare adopted swimsuit, with virtually 91% of market exercise going down in This fall. As faculties fluctuated between distant and in-person, Sawyer (#49) supplied various studying alternatives for kids within the type of on-line and in-person lessons and experiences. UrbanSitter (#97) helped dad and mom discover sitters as in-person occasions grew to become extra frequent.

Marketplace 100 2022: U.S. Vax Rates vs. Marketplace Activity

Gaming and Purchasing benefitted from a “new regular,” even post-vaccines

There’s maybe no higher instance of a long-lasting covid behavior than gaming. Time spent in video games noticed a big enhance in 2020 — and considerably surprisingly, continued to rise in 2021!

Solely two gaming corporations made the Market 100, however they punched above their weight. Each made the highest 20 and drove virtually 10% of complete market exercise, making Video games the second largest class behind Groceries (the latter of which is basically pushed by Instacart).

Marketplace 100: Games Category Marketplace Activity by Quarter

Valve, maker of Steam, maintained the #2 spot on this yr’s record, whereas Epic Video games’s market debuted at #20. Each Valve and Epic’s market permit customers to buy video games and in-game objects. 

Wanting on the pre-covid versus post-covid pattern, particularly the soar between Q1 and Q2 2020, exhibits that we are actually in a “new regular” for video games. This was possible not less than partially introduced on by quarantine, the place adoption of gaming and common time spent gaming each noticed a fast rise. Many customers have now developed wealthy in-game personas and relationships that they gained’t go away behind. The metaverse is right here to remain, and we anticipate to see spending on Video games proceed to develop.

Equally, Collectibles (inside the Purchasing class) has seen an enormous growth throughout covid, that additionally seems to be lasting. A couple of elements are at play right here. Quarantine drove record-high gross sales for tabletop video games (and their digital counterparts), like Dungeons & Dragons and Magic: The Gathering. This boosted curiosity in playing cards for these video games on marketplaces like TCGplayer (#12). 

Past tabletop video games, time spent at house pushed customers to revisit their troves of broader collectibles. A lot of them grew to become sellers (or patrons) on video-first platforms like Whatnot (#26), which additionally served as a supply of leisure throughout lockdown! This created a brand new era of collectibles merchants, who appear unlikely to desert their new ardour even after quarantine.

Marketplace 100: Collectibles Category Marketplace Activity by Quarter

Bonus: The Rise of NFT Marketplaces

Whereas on-chain crypto transactions aren’t picked up by bank card panel information, NFTs had been an enormous and necessary a part of the patron market story in 2021. 

Under are prime NFT marketplaces by all-time market quantity, per Dapp Radar information. NFT purchases have touched a number of classes of spend — particularly Video games, Artwork, and Purchasing. As NFTs (and crypto tokens extra broadly) more and more change into “entry passes” or present credentialing for various communities and experiences, we anticipate to see them in Ticketing and Schooling within the coming years, as properly.

Marketplace 100: All-time Marketplace Volume for Top NFT Marketplaces

The Way forward for the Market Mannequin

At a16z, we meet with dozens of early stage marketplaces each month, and whereas {the marketplace} mannequin for startups is clearly alive and properly, we’ve observed some new developments within the evolution of the enterprise mannequin itself. 

First, there’s an increase in startups centered on serving to each shopper and enterprise suppliers multi-tenant throughout varied marketplaces in a class. This usually entails itemizing and managing stock throughout a number of websites without delay. 

As a result of these corporations enhance sellers’ potential to multi-tenant, they lower “winner takes all” dynamics. A couple of examples of classes the place that is starting to emerge embody Clothes (a vendor can record on Depop, thredUP, and Poshmark in a single click on by way of websites like OneShop or Flyp), Rideshare (drivers can auto-switch between Uber and Lyft relying on fares and demand with apps like Mystro), and Meals Supply (eating places can handle and optimize listings throughout DoorDash, Uber Eats, and Grubhub through platforms like Otter and Deliverect). It’s nonetheless early innings for these intermediaries, however the subsequent era of marketplaces should compete extra to retain provide. 

We’re additionally seeing extra acquisitions of marketplaces by different marketplaces, which might impression an organization’s potential to “lock down” a class. In each 2020 and 2021, a lot of the corporations that “graduated” the Market 100 had been acquired — and plenty of acquisitions had been by different marketplaces! 

This yr, Bandcamp (#29 on final yr’s record) was acquired by Epic Video games, Tradesy (#41) was acquired by Vestiaire Collective, Depop (#46) was acquired by Etsy, and Breather (#100) was acquired by Industrious. This follows the 2021 acquisitions of Drizly and Postmates by Uber, and LetGo by OfferUp.

In some instances, corresponding to Etsy’s acquisition of Depop, or Industrious’ of Breather, these acquisitions really feel like a pure match, as the companies had been adjoining and even aggressive. In different instances, like Epic Video games’s acquisition of Bandcamp, it appears as if one market is buying one other so as to enter a brand new vertical. 

We’re additionally seeing many marketplaces evolve past purely providing a spot to browse listings and transact. These “2.0 marketplaces” have baked in purchaser or vendor instruments that make them a extra enticing platform – typically even locking one (or each) sides of {the marketplace} right into a subscription! One instance of this on the record is ResortPass (#61), which focuses on letting day visitors e-book facilities at resorts but in addition supplies software program to assist resorts upsell extra providers to in a single day visitors. One other is Headway (#81), which permits therapists to begin accepting insurance coverage – and due to this fact attain a completely new demographic of sufferers.  

The extra worth these sorts of marketplaces present outweighs any worth the client or vendor would get from attempting to arbitrage throughout platforms. Particularly within the fast-growing classes with increasing TAM pushed partially by new shopper developments, this sort of enterprise of mannequin innovation might have extra impression than we are able to see within the information as we speak. 

 

Whereas this yr’s market exercise was unprecedented, we anticipate much more upheaval in 2022. A wave of exits for corporations that outlined digital marketplaces mixed with new applied sciences and an evolving enterprise mannequin has created alternative for the following group of market giants to step in.

Methodology

Definition:

A market is any platform that connects patrons and sellers of products/providers with one another and facilitates a transaction. Market exercise is a mix of GMV, month-to-month lively customers (MAUs) in apps, and web site visitors for every firm on the record.

Information sources: The rankings for Market 100 for 2022 are a mix of three information sources: Bloomberg Second Measure, Similarweb, and Apptopia. 

Bloomberg Second Measure, a transaction information analytics firm that delivers insights into firm efficiency and shopper developments–throughout hundreds of private and non-private corporations. Word: Bloomberg Second Measure doesn’t observe some corporations on the 2022 Market 100 record.

  • Bloomberg Second Measure information is made up of billions of U.S. customers’ bank cards and debit playing cards. It excludes non-U.S. customers, enterprise spending, receipt-level info, and funds made through money, verify, or EBT.
  • Bloomberg Second Measure can not reliably attribute bundled income streams.
  • Ideas aren’t reliably differentiated from purchases on marketplaces and could also be included in some retailers’ GMV.
  • Bloomberg Second Measure doesn’t observe income from third-party retailers or different B2B income streams.
  • Bloomberg Second Measure doesn’t observe spending made with present playing cards.
  • Bloomberg Second Measure can not reliably attribute purchases financed by way of third-party corporations like Prosper and Affirm to {the marketplace} related to the acquisition.
  • Bloomberg Second Measure can not reliably observe spending financed by way of credit from promoting on a market.
  • Bloomberg Second Measure doesn’t observe income from company advantages partnership packages.
  • Transactions correspond to some corporations’ Gross Merchandise Quantity, a good portion of which isn’t income to the corporate. 
  • Bloomberg Second Measure doesn’t observe on-line funds by way of iTunes or the Apple Retailer.
  • Bloomberg Second Measure can not reliably observe market charges.
  • Bloomberg Second Measure doesn’t observe market income generated by third-party referrals.
  • Bloomberg Second Measure is cited as a supply, however didn’t contribute to the evaluation.

Similarweb: As essentially the most trusted platform for understanding on-line conduct, buyers use Similarweb’s estimated information each day to investigate the digital efficiency of private and non-private corporations so as to perceive what is going on throughout the digital ecosystem. Similarweb supplies information on one billion web sites, 4.7 million apps, throughout 210 industries and 190 international locations. Be taught extra right here. 

Timeline: The rankings had been calculated over dates spanning January 2021 to December 2021. Yr-over-year progress charges are counted as gross sales between January 2020 by way of December 2020 vs. January 2021 by way of December 2021.


Posted



Know-how, innovation, and the longer term, as instructed by these constructing it.

Thanks for signing up.

Examine your inbox for a welcome notice.

LEAVE A REPLY

Please enter your comment!
Please enter your name here