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#41 — DeepDive — Marketplaces — Lenny Rachitsky

Magic Minds

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Why Founders Want to Go After the Marketplace

In an ideal world, if you could choose between a marketplace and SaaS business, which one would you choose? And maybe that'll help answer why founders early on also try to go after the marketplace. The five reasons I think they're great businesses is why people want to get into them. One is they have network effects, which is another word for as you add more users,. It becomes more useful to all of the users, which then drives more users.

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