It allows users to save and organize links to articles, websites, and other online content. The platform was founded in 2011 and participated in the Y Combinator startup accelerator program. Kippt gained popularity among tech enthusiasts and knowledge workers as a tool for curating and sharing resources. However, despite its initial traction, Kippt struggled to achieve sustainable growth and eventually shut down in 2015.

It allows users to save and organize links to articles, websites, and other online content. The platform was founded in 2011 and participated in the Y Combinator startup accelerator program. Kippt gained popularity among tech enthusiasts and knowledge workers as a tool for curating and sharing resources. However, despite its initial traction, Kippt struggled to achieve sustainable growth and eventually shut down in 2015.

So, what went wrong for Kippt? And how can marketplace Founders learn from its journey? One key lesson is the importance of understanding whether your marketplace is supply-constrained or demand-constrained. This distinction is crucial because it determines where you should focus your efforts and resources.

In the case of Kippt, it seems that they were more supply-constrained. They had a solid user base of content curators who were actively using the platform, but they struggled to attract a critical mass of users who would benefit from the curated content. This resulted in a lack of demand and limited growth potential.

To overcome this constraint, marketplace Founders should consider strategies for growing the supply side. One effective approach is to turn infrequent suppliers into "power sellers" or "power users." By increasing the number of transactions with these suppliers, they become more engaged and reliant on the platform. This deepens their relationship with the marketplace and improves the overall user experience.

Another crucial aspect of growing the supply side is understanding the unit economics and lifetime value (LTV) of supply-side acquisition. By capturing more demand with the same or similar types of supply, marketplace Founders can expand their reach and increase revenue. This could involve enabling the product to be sold in more geographies or exploring adjacent categories.

On the other hand, marketplace Founders should also focus on growing the demand side. Product innovation plays a key role in attracting users and capturing more demand. By continuously improving the platform and adding new features, marketplace Founders can create a compelling value proposition for users.

Additionally, marketplace Founders should consider the power of global network effects. Marketplaces with a large user base benefit from the value created by the total number of users on the network. This makes global marketplaces highly attractive, but also more challenging to scale and defend.

For local marketplaces, the strategy is slightly different. While they may be harder to get off the ground, local marketplaces can be highly defensible if executed well. The key is to be thoughtful in geographic expansion and not rush into new markets too early. By focusing on dominating one local market first, marketplace Founders can achieve market leadership and replicate their success in other geographies.

DoorDash is a prime example of this strategy. They initially focused on capturing the less competitive suburban markets, where they acquired users who retained better and made larger purchases per transaction. This allowed them to establish a strong presence in these markets and generate significant revenue. Now, DoorDash is expanding into other geographies and leveraging its market leadership to unlock scale advantages and pricing power.

In conclusion, marketplace Founders need to understand the constraints of their marketplace and develop strategies tailored to their specific situation. Whether you are supply-constrained or demand-constrained, there are actionable steps you can take to drive growth. From turning infrequent suppliers into power users to focusing on product innovation and geographic expansion, these strategies can help marketplace Founders unlock the full potential of their platform. Remember, growing a marketplace is a complex and dynamic journey, but with the right approach, success is within reach.