Enterprise Gateway Marketplaces Will Turn Large Organizations Inside-Out

On the other side, the millions of smaller vendors, EGMs solve the challenge of selling into large corporations. 

The positive thing is that once you solve the first and second sale for one large corporation, you often have enough demand to solve the chicken-or-egg problem and attract supply because the company should represent 100’s or 1,000’s or 10,000’s of buyers. This lets you methodically build toward critical mass and start benefiting from a network effe... See more

EGMs are the approach we’ve seen that best unblocks the network pollution and makes it more efficient to go outside than rely on bringing things in-house.

For EGMs, the biggest area of difficulty is that you have 3 different types of stakeholders on the demand side who dictate product adoption, and come with different types of needs, incentives, and acquisition strategies:

Here’s a new marketplace category: Enterprise Gateway Marketplaces (EGMs).   There is a white space opportunity for Founders in EGMs that combines SaaS embedding defensibility with the network effects defensibility of a marketplace.

EGMs represent a new category of B2B SaaS.

Four Attributes Of A Successful EGM 1. EGMs have a Gateway, a single point of access for many buyers. 2. Getting inside, get approved.3. Create trust in supply through data.4. Help vendors comply.

Imagine lower transaction costs with people outside than inside the corporation.

How EGMs Will Change The Corporation Corporations have been the most efficient structure to get stuff done. They are large network structures that, like nearly all networks, minimize transaction costs and work on the law of least resistance.  Traditionally, the networks formed inside a corporation have been denser, faster, and more valuable th... See more