Platform Valuation: Marketplaces, Networks, and Two-Sided Markets

Platforms (marketplaces, networks, two-sided markets) have unique characteristics that impact valuation: network effects (value increases with users), two-sided markets (suppliers and consumers), liquidity (transaction volume), take rate (commission), GMV (total volume), and defensability (barriers, switching costs). Valuation requires specific methods: GMV multiples (1x to 5x), revenue multiples (5x to 20x), network effects analysis (density, liquidity, growth), take rate analysis (optimization, competition), and defensability analysis. This guide details specific methods, metrics analysis, network effects evaluation, risks (liquidity, competition, regulatory), and how to structure a sale. We include templates and real marketplace case studies.