Race to the bottom, ignoring the winner-take-all scenario where you do everything for everyone, when the next group comes in at 2% + copy pastes your entire website copy and you’ve already inoculated to the end market that this solution works, which they piggy back on to get traction....can you survive more than a few qualified competitors and actually make it to cash flow break even? And why won’t this be a “many make no profit” type of market that settles with many undifferentiated sellers with close to substinance level terminal margins?
Obviously marketplaces are great, your product market fit seems strong, and you have both demographics and GMV trends behind you; but you’re in a space with passionate people who might do things for free (like people host or participate in gaming forums or discords).
Even at a few engineers you’re burning cash for quite a while, but you’re touching minors (sorry, no pun) in highly regulated markets like Europe, so you probably need a few compliance dedicated FTEs. How do you resolve disputes where it’s not QUITE the $50k skin and they sue? Or do you require arbitration at signup?
How does this work in the first 3 years until you hopefully win? VC funded burn?
Obviously marketplaces are great, your product market fit seems strong, and you have both demographics and GMV trends behind you; but you’re in a space with passionate people who might do things for free (like people host or participate in gaming forums or discords).
Even at a few engineers you’re burning cash for quite a while, but you’re touching minors (sorry, no pun) in highly regulated markets like Europe, so you probably need a few compliance dedicated FTEs. How do you resolve disputes where it’s not QUITE the $50k skin and they sue? Or do you require arbitration at signup?
How does this work in the first 3 years until you hopefully win? VC funded burn?