Page 49 - Praetura EIS 2019 Fund Information Memorandum
P. 49
Some examples of business models we back include;
Brokerage SaaS Marketplace
Having backed and successfully exited PIB (3x), Sorted and Peak, within our technology cohort, are We see a number of two-sided marketplaces as
Inspired Energy (16x) and EC3 Brokers (20x), we building technology platforms to service enterprise potential investment opportunities. While we’ve not
have extensive experience in backing brokerage e-retailers. The model is to create an embedded found a suitable company to make an investment
models. platform that provides business critical services to the in with this model yet, we’re confident it can lead
client. to explosive growth if there’s strong commercial
We believe that the brokerage model, whether tech- imperative and a powerful go-to-market strategy.
enabled or not, allows a business to scale rapidly, We believe that once a platform is built and has
with minimal working capital requirements and to gained traction, the embedded nature of the service The marketplace model is an attractive one as once
generate recurring revenue or repeatable revenue and the cost to build the platform create a significant critical mass is achieved, the marketplace is able to
streams with high gross margins. barrier to entry for competitors. capture significant value from the network.