Product & Startup Builder

Communities vs Business

Added on by Chris Saad.

I’ve noticed It’s difficult for community minded people to understand tech startups and to raise money for them.

They tend to be very good at nurturing a group of people around a common cause, but not building a software based business with intent to transact.

Here’s a few tips…

1. Communities are cute, but they are non-transactional, amorphous and don’t scale as a business. They are, however, useful as a marketing, retention and support tactic.

Marketplaces, on the other hand, are communities built around intent and transactions. Much more commercial, purposeful and scalable

2. Tech investors invest in tech. Not Services. What is your tech to facilitate the peer-to-peer marketplace?

3. What are your unit economics?

4. How will you scale this to touch all the relevant people?

5. Who and what are you disrupting? How big is that market?