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Airbnb is a well-known example of the marketplace businessmodel. Understanding the problem you are solving for your customers is undoubtedly the biggest challenge you’ll face when you’re starting a business. But, ensuring that your product fits the needs of the market is only one part of starting a successful business.
As an enthusiast of the entrepreneurial ecosystem, and in particular the financial sector, I decided to focus and look into the list, review the fintech companies selected one by one, and understand the businessmodels behind this industry. I delved deeper in order to look beyond this information.
And the beneath-the-surface rumblings were about how it was screwing up the venture capital businessmodel. The article suggests – and we agree – that angels are disintermediating traditional VCs in many cases. This was a problem for a few, and an opportunity for many.
Disintermediation is one of the oldest stories of the internet. We’ve seen Betfair cut the middleman out of sports bets for a reasonable chunk of the football and horseracing gambling market in the UK but I can’t think of another large business that has disintermediated a consumer market.
Companies from a vast variety of background who have never compete with each other, are now converging businessmodels and are all competing. There is disintermediation going on. But on the other side, there are very few barriers, and little defensibility for successful companies.
But of course the company is incredibly deserving of heavy admiration and emulation for how, in just a few short years, they've re-engineered and become the default offering for a massive business category. Very many companies have as their businessmodel distributing / reselling, - i.e For profitable reselling, Grainger.
The evolution of business is all about the reduction of latency and disintermediation through technology, as in the elimination of human action. We went from calling businesses during business hours, or visiting a location, to extended and 24/7 call centers and then email and then the web.
Twenty years from now, we will see disintermediation of banks, and millenials will no longer recognize the current banking system as they will receive financial services from a number of new entrants in the technology sector. employ 60K people in 11 countries. The post Are Banks the Next Dinosaurs?
Twenty years from now, we will see disintermediation of banks, and millenials will no longer recognize the current banking system as they will receive financial services from a number of new entrants in the technology sector. employ 60K people in 11 countries.
Then, layer in elements of the kinds of companies funded by angel investment groups and early stage venture capital firms – i.e. focused on hot technology spaces like mobile commerce, healthcare information technology and possessing fast-scaling revenue and thoughtful “Porter Five Forces-Friendly” businessmodels.
If massively succesful, Isis might disintermediate the companies that manufacturer plastic payment cards and perhaps the companies that make mag stripe hardware (e.g. Also some of the mobile banking players are considering to build a parallel network that would disintermediate the card associations.
acquisition of Plaid by Visa, in a highly competitive deal, shows how even the largest incumbents are feeling pressure to innovate and need to think outside of their current businessmodels. The recently announced $5.3B
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