Step 1: Win one niche completely
Pick one category and one location or customer type, and make the marketplace work there. Investors would rather see strong liquidity in one city or trade than thin activity nationwide.
Step 2: Measure liquidity properly
Liquidity means the chance that a listing sells or a request is fulfilled within a reasonable time. Track match rate, time to match and repeat usage on both sides. These numbers matter more to investors than total listings or sign-ups.
- Share of listings or requests that complete.
- Time from listing to transaction.
- Repeat rate for buyers and for sellers.
Step 3: Defend your take rate
Show what you charge and why users accept it — payments protection, trust, scheduling, financing, insurance or AI-powered matching that saves time. Be clear about leakage, where users meet on your platform and then transact off it, and how you reduce it.
Step 4: Show how AI strengthens the network
AI can improve matching, pricing suggestions, fraud checks and listing quality. Tie each use to a liquidity or take-rate improvement investors can see in your numbers.
Step 5: Present an expansion plan based on evidence
Explain which next niche or region you will open, why your playbook transfers and what it cost to reach liquidity in your first market. That cost is the core of your fundraising ask.
Marketplace metrics investors check
| Metric | What it shows | Warning sign |
|---|---|---|
| Liquidity (match rate) | The marketplace works | Many listings, few transactions |
| Take rate | Value captured per transaction | Falling as you grow |
| Repeat usage | Users trust the platform | Growth driven only by paid acquisition |
| Leakage | Transactions staying on platform | Repeat pairs disappearing |
Questions to prepare before you pitch
- What share of listings or requests result in a completed transaction?
- Which side of the marketplace is harder to acquire, and how do you do it?
- Why do users pay your take rate rather than going direct?
- What did it cost to reach liquidity in your first market?
- How will you open the next market, and why will it be cheaper?
How KJ Enterprises evaluates marketplace businesses
KJ Enterprises looks at marketplaces with proven liquidity in a focused niche and a clear reason for users to keep transacting on the platform. We are interested in AI that measurably improves matching and trust.
If that describes your company, you can apply for investment. Related reading: the complete marketplace funding guide and how to raise for an ecommerce business.