The Future of Marketplaces

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Here some notes and tentative next steps regarding your proposal:

General org / timetables: ● We should fix tentative dates for the first and second report release --> to be shared with our internal comms team ● Would be great to set up a second kickoﬀ meeting, ideally on Mon the 22th at 15,30h ● To follow up the project, we should set initially weekly calls: every Thu at 11 works?

Regarding reports and webinars, our view: ● 2021 - Global approach: The future of marketplaces ○ From "digital adoption" -- to "full digital" (past report) ○ to "how fintech will give superpowers to marketplaces" Initiating a series of reports on marketplaces (check marketplaces.dealroom.co for more info) ○ + Sustainability angle ● Need to define formats: ○ Large: Number of pages and format. We'd like to see examples from previous reports or other topics ○ Short report: Number of pages and format. Examples too. 12 May 2021

● Reports (Priority) - Adevinta ventures POV --> We need to have a clear message/goal per report --> kind of media Headline ○ Launch report: refresh + introducing fintech angle ○ RE: global RE approach, not only ibuyers but also new ownership models and new rental models: Build2rent, rent2own and End2end rental platforms ○ Mobility: asset-light vs asset-heavy models + fintech connection ○ B2B marketplaces + fintech ○ Future of work + fintech ○ Ranking

● Webinars: ○ Global game: consolidation in marketplaces

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Mark E.T. Places Valid thru 12 MAY 2021 Investing in the future of marketplaces. Game-changing support for early-stage Global startup & venture capital tech founders. intelligence platform.

Adevinta Ventures is the VC arm of the Adevinta Speedinvest is a European venture capital fund Dealroom.co is the foremost data provider on startup, group, a global online classifieds specialist with more than €400M AUM and 40 investors early-stage and growth company ecosystems in operating leading digital marketplaces in 11 working from Berlin, London, Munich, Paris, Europe and around the globe. countries. We invest in fast- growing European Vienna and San Francisco. Employing a focused startups (Series A and B rounds) that can shape investment team structure, we fund innovative Founded in Amsterdam in 2013, we now work with the future of mobility, real estate, work and early-stage technology startups in the areas of many of the world's most prominent investors, fintech. We also foster collaboration Deep Tech, Fintech, Industrial Tech, Network entrepreneurs and government organizations to opportunities between our portfolio companies Eﬀects, Digital Health and Subscriptions. provide transparency, analysis and insights on and Adevinta brands. venture capital activity.

Page / 2 Marketplace unicorns have Record investment for the most New startups are building more grown 70% in value since Jan ambitious generation of vertically integrated models, to 2020 to more than $5T, marketplace startups ever. unlock lucrative new markets. outperforming tech overall.

Global online marketplace unicorn valuations Online marketplace startups continue to raise As of April 2021, more than 370 marketplace have grown 70% since Jan 2020 vs. 50% for billions in funding, across every sector. unicorns have been created globally, yet the Nasdaq. future and models of online marketplaces Marketplaces Global VC investment Q1 2021 investment tripled year on year to an continue to evolve. $132B ▊ Actual Fashion (+142% value), Food Delivery (+132%) all-time high of $28B, with $12B more already raised in the first 5 weeks of Q2. Some of the largest consumer spending ▊ 2021 annualized based on Jan-April and Digital Health (+120%) have been the highest performing segments in 2020/21. categories, like homes, cars and jobs went digital in 2000s, but only on the discovery side - Valuation of marketplaces (public + unicorns) VC funding into marketplace startups through search and comparison sites.

+70% $5.0T $28B With vertical integration, embedded finance, 2.8x and increased consumer online penetration, these segments are about to be transformed by new models of “full stack” online marketplaces, $2.9T $2.2T unlocking huge new markets and growth opportunities. $9.9B

The biggest opportunities for online marketplace still lie ahead.

Q1 Q1 Q1 Q1 Q1 Jan Jan May 2019 2020 2021 2017 2018 2019 2020 2021

Page / 3

2010 2021 Table of contents.

1 The global acceleration of marketplaces

2 Record venture capital investment

3 Vertical integration and software/finance enablement

A Appendix: Learn more about marketplaces

Page / 4 1 The global acceleration of marketplaces There are 30 known marketplaces worth $20 billion What’s happened or more. These 30 companies have a total value of The role of online marketplaces has The world’s most valuable marketplaces $3.7 trillion. Since January 2020 (the pre-Covid Tech-driven bull market (Nasdaq $19T), up _% benchmark) they together increased in value by $1.6 been amplified. trillion. Tech seen as safe asset, aided by low interest ▊ Public companies * ▊ Private companies rates. Resulting in higher multiples Back in June 2020, Adevinta, Dealroom and Speedinvest released a There are _ unicorns worth _ Amazon $1.6T report on marketplaces, during the early stages of Covid pandemic. Alibaba $620B One year later, it’s time to take stock. Meituan $240B Refer back to the report from June 2020 Accelerated digital adoption during pandemic Pinduoduo $170B created tailwinds, resulting in companies $136B In the last ~15 months there’s been a tech-driven bull market, the Shopify 373 marketplace unicorns, with a combined value of beating expectations. Especially in Food, Uber $110B direction of which was anticipated by many, but the scale by few. The $5.0 trillion Airbnb $104B Health Tech, eCommerce. Nasdaq is up 50% since January 2020, now worth $19 trillion. Booking $89B Tech’s not just outgrowing other sectors;

MercadoLibre $78B [Accelerated adoption during pandemic created Coupang $78B it’s starting to become (highly) profitable. Several marketplaces reaching profitability. In parallel, venture capital is seeing investment records smashed. tailwinds, resulting in companies beating Didi Chuxing $62B This even applies to full-stack models, which Tech is now seen as safe asset. Low interest rates result in an DoorDash $49B expectations. ] Carvana are here to stay. abundance of risk seeking capital. But more fundamentally, $48B Technology companies’ share of S&P 500 net earnings JD Health $47B accelerated digital adoption during the pandemic created tailwinds, (taken from Heartcore.com 2021 report) 80% of adult population is now online eBay $42B resulting in companies beating expectations. And here, marketplaces LinkedIn Marketplaces going after bigger opportunities $40B have benefitted strongly; especially in areas like Food, Digital Health, Grab $39B and getting a bigger piece of the pie through Instacart and eCommerce. $39B full-stack models Delivery Hero $39B Wayfair $38B As a result of this acceleration, there are now 30 known Chewy $34B marketplaces worth $20 billion or more, with the world’s top Zillow $33B Epic Games $29B marketplaces (public companies and and private unicorns) worth a Teladoc $28B combined $5 trillion. Zalando $28B Etsy $27B * Market capitalization of the entire business. Some cases like This report looks at which models are winning, where global growth Flipkart $25B Amazon and Alibaba include also other non-marketplace businesses. Expedia $25B Prosus not included as it’s mostly Tencent’s valuation while OLX is happening, and what trends are coming down the road. Ocado $22B Goup is estimated below $20B. Lyft $21B

Page / 6 Source: Dealroom.co. Analysis of Google Finance data. 27%

2000 March 2021 Public and private unicorn marketplaces have accelerated, growing by 70% in What’s happened value since Jan 2020 from $2.9 to $5.0 trillion, outpacing even the Nasdaq. Tech-driven bull market (Nasdaq $19T), up _% Combined valuation of public and private unicorn marketplaces ($B)

▊ Private marketplaces unicorns Examples: Growth since Tech seen as safe asset, aided by low interest ▊ Public marketplaces founded before 2005 $5.0T March ‘19 rates. Resulting in higher multiples ▊ Public marketplaces founded since 2005

▊ Amazon $0.7T +62% Accelerated adoption during pandemic +70% Private 1.6x created tailwinds, resulting in companies since beating expectations. Especially in Food, Jan 2020 $2.9T $1.2T +160% Health Tech, eCommerce.

+28% $2.5T $2.7T Jan 2019 to $0.4T Several marketplaces reaching profitability. $2.2T Jan 2020 This even applies to full-stack models, which $0.4T $1.5T +36% Public are here to stay. $0.5T 1.7x $0.3T $0.4T $1.6B $0.3T Marketplaces going after bigger opportunities $1.2T $1.3T $1.1T and getting a bigger piece of the pie through $0.9T $0.9T full-stack models $1.6T +82%

1.8x growth $706B $871B $775B since Jan 2021 Jan Jan March May 2019 2020 2020 2021

Source: Dealroom.co. Analysis of Google Finance data. Page / 7

Market capitalization $32T Global markets Fragmented markets ▊ S&P 500 ▊ Nasdaq 100 Travel Food delivery Airbnb, Booking, Expedia Delivery Hero, UberEats, 69% of the increase is TakeAway, Grab, Swiggy driven by Nasdaq Mobility (semi-fragmented) Property Uber, Lyft, Bolt, Grab, Wolt Zillow, Opendoor, Kodit, Tech now represents the majority of stock 59% Homeloop market capitalization.

Fashion Groceries Tech’s not just outgrowing other sectors; it’s Farfetch, Zalando Getir, Gorillas, Justo, $11.7T starting to become (highly) profitable. $9.0T Instacart, Ocado $19T Technology companies’ share of S&P 500 net 47% Job search Digital health earnings $2.6T 36% LinkedIn, Indeed Teladoc, WeDoctor, ZocDoc, (taken from Heartcore.com 2021 report). [...] KRY, Doctolib 24% 3.2 Several marketplaces reaching profitability 1990 2000 2010 March 2021 (even full-stack models). Nasdaq +59%

MSCI +28%

Marketplaces also outperformed the wider tech sector, with food and grocery delivery, health and fashion driving this growth. % valuation increase since Jan 2020 ($B) Private and public marketplace companies by segment Examples »

Public marketplaces (62%) % growth in value since Jan 2020 ($B)

Amazon 83%

142% 132% 120% 88% 82% 70% 69% 67% 60% 59%52% 50% 32% 23% Other public 66% 66% marketplaces 62% Fashion Delivery Digital Amazon Groceries All Job Car Home Travel Nasdaq(1) Mobility MSCI(1) Health marketplaces search search search Public Private marketpl Private marketpl 62% aces aces marketplaces Acceleration of revenues Resilience in business model

Source: Dealroom.co. Analysis of Google Finance data. Page / 8 Nasdaq 49% 1. NASDAQ Composite index. MSCI stands for Morgan Stanley Capital International and is a global equity index.

MSCI World Index 19%

% growth in value since Jan 2020 ($B) % growth in value since Jan 2020 ($B)

Fashion 142% Delivery 132%

Digital Health 120% Amazon 88%

Groceries 82%

Job search 69% Home search 60%

Nasdaq 59%

Travel 52% Mobility 32% MSCI 28% Spotify $46B 58% 16% 16%

Just Eat Takeaway $15B 40% 375% 500%

Jan 2020 May 2021

Several marketplaces reaching

[Profitability] profitability. This even applies to full-stack Public marketplaces - driven by accelerated adoption - beat initial revenue forecasts, models, which are here to stay. leading to significant upticks in valuations. Online classifieds Transactional Full-stack In 2015, 11% of global venture capital was invested into European startups. By 2019, marketplaces marketplaces this was up to 16%.

OLX, RIghtmove Booking In 2019, European startups raised €39 Actual Increasingly investing in Profitable in Q2 Positive Adj. EBITDA % valuation Expected 2020 billion, compared logistics with €116 billion in North2020 and [....] in Q2 and Q3 Revenue growth May 2021 2020 revenue America and €66 billion in Asia. In other (Jan 2020 vs. today) Company increase since revenue growth words, North American VC investment is 3x Market cap (€B) growth in May higher than in Europe, compared to 5x higher Jan 2020 in Jan 2020 in 2015. Meanwhile, comparing the 1.8x 2021 valuations of the top-5 VC backed companiesAdj. from EBITDA the $10M last in Q4 decade, Reached the positive cash [...] 1.6x $37B +76% 75% 108% difference is only 2.2x2020. (see page 9). flow in 2020

The increase in Europe was partially the Revenue result of Chinese investment collapsing. The 1.5x $27B +83% 20% 25% Meeting or beating collapse of investment in China provides a estimates, driven by lesson to Europe: it takes time to build an ecosystem and quick gains are also quickly Already highly profitable accelerated digital 1.4x $21B +52% 19% 31% Investor community is accepting / taking lost. Expected to be fully in core markets but adoption among [...] for granted that consumer behavioural profitable in 2022 making defensive move households, small change is structural and a long term By number of venture capital rounds greater into logistics $16B +155% 50% 67% (1) businesses and large 1.2x pattern by betting on winners (growth on than €2 million , Europe has increased its enterprises Investor risk appetite capitalization) share as well. In 2019, 26% of those rounds were raised by European startups, up from Technology increasingly seen as a Can we prove that are the real winners $15B +241% 22% 106% 18% in 2015. 1.0x prudent long-term investment, showing solid growth on revenues (annual Expects to be profitable in

accounts published)? 2022 instead of risky Can we compare here capitalization

increase Vs sales increase YoY (implicit 2.5x 5.0x 7.5x 10x 12.5x 15.0x 17.5x 20x questions is EBITDA wise) in bars below? EV/Revenue LTM (current) Source: Dealroom.co analysis of Google Finance data. (Jan 2020 vs. today) Page / 9

Expected Actual % YoY 2020 2020 EV / LTM revenue revenue revenue EV / LTM Market cap % Valuation Company Market cap (€B) revenue growth growth growth revenue (€B) increase

55.4B 17.7x 7.7x 11.5 7.7x 17.7x 55.4 11.5

48.0B 6.0x 2.8x 12.0 2.8x 6.0x 48.0 12.0

28.2B 15.4x 9.8x 6.1 9.8x 15.4x 28.2 6.1

24.8B 3.1x 1.7x 6.3 1.7x 3.1x 24.8 6.3

11.7B 3.4x 1.6x 6.0 1.6x 3.4x 11.7 6.0

7.1B 13.2x 19.0x 16.7 19.0x 13.2x 7.1 16.7

6.4B 19.5x 13.8x 18.6 13.8x 19.5x 6.4 18.6

5.9B 39.6x 50.4x 18.7 50.4x 39.6x 5.9 18.7 2 Record venture capital investment Record amounts of venture capital are being invested in marketplaces. This enabled them to go after bigger opportunities and getting a bigger piece of the pie through vertical integration aka “going full-stack” taking a bigger role.

Building logistical infrastructure and last mile is skyrocketing, highlighting the trend towards vertical integration.

Building logistical infrastructure and last mile is skyrocketing, highlighting the trend towards vertical integration. Similar trends were also seen in the private markets, with venture capital in Q1 2021 smashing the all-time investment record, and growing nearly 3x over Q1 2020.

Global VC investment in food logistics and warehousing startups Global VC investment in marketplaces Majority of deals are full-stack models, $10B * Quick Commerce Grocery delivery logistics and last-mile delivery. $28B Cortilia, Glovo, Oda, $24B Instacart, goPuﬀ $528M $530M $290M

$6.8B $6.2B $17B $5.1B $15B $5.1B $460M $1.2B $425M $4.8B Food delivery Warehousing and $8.9B $2.9B logistics $7.5B $2.5B $2.4B $2.4B Bolt, Grab, Swiggy, $2.2B $9.9B $1.5B $1.7B $1.2B Zomato, Wolt Lalamove, Lineage $400M $800M $300M Logistics $0.3B $25M $0.3B Travelperk GoStudent H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H1 H1 H2 H1 2013 2014 2015 2016 2017 2018 2019 2020 2021 $160M $312M $82M

April Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021

Source: Dealroom.co. Page / 11

Marketplaces are going after bigger opportunities and getting a bigger piece of the pie through vertical integration aka “going full-stack” taking a bigger role.

Taking a bigger role in transaction. Marketplaces are going after bigger opportunities.

Groceries Health/Education

Commission Global market size $10T $10T $8T $8T $8T $8T $5T $5T Consumer internet Consumer internet is a cross section $5T $6T is a cross section $5T $6T across sectors, and across sectors, and going after bigger going after bigger markets markets $3T $3T $2T $2T

Media Fashion Travel Health Media Fashion Travel Health MobilityEducationGroceries Housing Insurance MobilityEducationGroceries Housing Insurance & Banking & Banking At the current pace, 2021 investment into marketplaces would more than double from $59B to VC investment in marketplaces by destination * Jan-May 2021 vs Jan-May 2020 $64.6B $132B. Row 2.9x $54.0B $54.3B $132B $51.0B Europe 2.6x $46.5B Marketplaces Global VC investment $43.8B Asia excl. China 2.5x ▊ Actual United States 2.4x $34.3B ▊ 2021 annualized based on Jan-April China 1.5x $23.1B +x% $75B $9.7B $9.3B 2021 VC investment by destination * $7.9B $64B $63B $59B $3.3B $55B Jan-May 2021 $46B +x% $41B United States $15B 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Asia excl. China $15B $28B +x% Europe $8.7B

$11B China $5.3B $11B $10B +x% $4B RoW $2.8B +x% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 +x% $127. Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Source: Dealroom.co. 2B Page / 12 * including primary capital raised via SPAC private placement. 2019 2020 ‘21

$88.2 B $81.1 $78.7 $77.2 B B $75.1 B $71.2 $59.2 B $67.9 B $66.3 B $61.8 B B B $58.9 B

Q Q Q Q Q Q Q Q Q Q Q Q Q 1 2 3 4 1 2 3 4 1 2 3 4 1 2018 2019 2020 2021 VC investment by destination ▊ Europe ▊ United States ▊ Asia ▊ $77.5BRoW

$68.2B $66.1B $61.2B $56.9B 1.5x $45.4B $39.7B

$28.4B

$11.5B $9.8B$11.8B $3.9B $127. 2B

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Nearly all regions are seeing rapid growth in VC investment into marketplaces. +x% $64.6B ▊ Marketplaces VC investment by destination ▊ 2021 annualized based on Jan-April

$54.0B $54.3B $51.0B $43B Europe $26B Rest of Asia (excl China) $26B USA +x% $46.5B $43.8B

$17B $18B

$14b $14B $34.3B $23B $22B $10B $20B $20B +x% $9.1B $9.2B $15B $9.0B $7.6B $8.4B $13B $6.7B $5.7B $6.9B $11B $11B $6.4B $185B $4.5B Property Search $3.2B $23.1B $5.2B $5.5B $3.3B $1.8B.$1.8B $1.8B +x% $1.9B $0.6B$0.8B $0.5B $0.5B $0.9B

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 +x% $9.7B $9.3B 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $7.9B +x% $2.9B Latin America Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 $3.3B China $25B Rest of the World $5.8B $24B 2019 2020 ‘21

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $18B $1.4B $17B $16B $15B $1.2B $13B $1.1B $2.9B $1.0B

$2.0B$2.0B $0.6B $0.6B$0.7B $1.7B $0.5B $5.8B $5.3B $88.2 $4.6B $0.3B $1.0B $0.5B $3.1B $0.2B $0.6B $0.5B B $0.1B $0.1B $0.3B $0.3B $81.1 $1.9B $0.1B $0.1B $78.7 $0.6B $75.1 $77.2 B B $59.2 B $71.2 B 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $67.9 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 B $66.3 B $61.8 B B B $58.9 Source: Dealroom.co. B Page / 13

Q Q Q Q Q Q Q Q Q Q Q Q Q 1 2 3 4 1 2 3 4 1 2 3 4 1 2018 2019 2020 2021 In Europe super-rounds picked up after Q1 2020.

Select rounds above $50M since January 2020

Mobility Meal and grocery delivery Clothes and Accessories

Deliveroo IPO $6.7B Mar 2021

Auto1 IPO $13B Feb 2021 $115M $165M $250M $121M $290M $108M $542M $120M $64M $196M Wish IPO $8B Dec 2020 $530M Allegro IPO $16B Sep 2020 Coupang IPO $78B Mar 2021 $73M $240M $107M $180M $100M $271M GoodRx IPO $15B Sep 2020 GoHealth IPO $4B Jul 2020 Digital health Education Travel Hims & Hers SPAC $2B Jan 2021 IPO $106B Dec 2020 Airbnb $312M $64M DoorDash IPO $49B Dec 2020 $162M $154M $70M $65M $215M $165M $160M $122M Cazoo SPAC $7.0B Mar 2021 $312M Grab SPAC $39.6B Apr 2021 $108M TalkSpace SPAC $1.4B Jan 2021 Lending Horizontal Home search Lilium SPAC $3.3B Mar 2021

$165M $191M $183M $182M $73M

Source: Dealroom.co. Page / 14 There have been several billion dollar marketplace exits for investors, via IPO, M&A, and SPACs.

M&A and IPOs of European marketplaces

▊ IPO ▊ M&A ▊ SPAC $1.6B Deliveroo IPO $6.7B Mar 2021 $2.2B Auto1 IPO $13B Feb 2021 Wish IPO $8B Dec 2020 $13B Allegro IPO $16B Sep 2020 Coupang IPO $78B Mar 2021 $6.7B GoodRx IPO $15B Sep 2020 $16B GoHealth IPO $4B Jul 2020 Hims & Hers SPAC $2B Jan 2021 $10B Airbnb IPO $106B Dec 2020 $6.3B $6.2B DoorDash IPO $49B Dec 2020 $7.0B Cazoo SPAC $7.0B Mar 2021 Grab SPAC $39.6B Apr 2021 $6.5B $1.6B $1.2B TalkSpace SPAC $1.4B Jan 2021 $3.3B Lilium SPAC $3.3B Mar 2021

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Source: Dealroom.co. Page / 15 Venture capital has become more global, Globally and in Europe, venture is trending especially more flows from USA and Asia into towards bigger rounds. Europe is still slightly European marketplaces. behind the curve in terms of super rounds.

Venture capital amount invested from Number of VC rounds in marketplaces ▊ Europe ▊ Domestic ▊ USA ▊Asia ▊ RoW ▊Unknown HQ ▊ $0–1m ▊ $1–4m ▊ $4–15m ▊$15–40m ▊$40–100m ▊$100–250m ▊$250 Global Europe Global Europe

Global Europe Global Europe

Late stage

Mid stage

Early stage

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 201020112012201320142015201620172018201920202021 201020112012201320142015201620172018201920202021 201020112012201320142015201620172018201920202021 201020112012201320142015201620172018201920202021

Page / 16 Source: Dealroom.co. For more information and underlying data check the platform.

Global Europe

201020112012201320142015201620172018201920202021 373 marketplace unicorns, with a combined value of $5.7 trillion

Number of Unicorns and $1B+ exits by country USA 140 China 82 United Kingdom 25 Germany 22 India 21 France 9 Brazil 8 Singapore 7 Australia 7 South Korea 6 Indonesia 5

Fintech

Good comment from Toyosi: +20 unicorns between Q1 20 & Q1 21, grouped by vertical and amount raised. (obviously not all of them). If you show the ones that attracted the most capital and then became unicorns in that period, that'll be a good insight. United States China Europe Rest of Asia RoW MadeiraMadeira Add food delivery, car ownership49 etc Pipe.com, Weee!, Dutchie, Dispatch Health, Public.com

Groww, Meesho, Rebel foods, Zolara Group, Infra.Market Marketplace unicorns and $1B+ exits Gorillas, Getir,Pharmacy Vestiaire Collective, Smava, Back Market, Bitpanda There’s been an explosion of Pet food marketplace unicorns globally. Xingsheng Youxuan, RELX Technology Sorted by largest rounds: Cumulative 1990-today New unicorns in 2021 Xingsheng Youxuan (community shopping) $2B Marketplace companies reaching $1B valuations Fashion 48 Fintech 8 Food delivery 33 Fashion 6 Wolt (food delivery) $530M Travel 24 Groceries & Meal kits 4 IAD France (Home search) $330M Shared mobility 22 Digital Health 4 160 Weee! (Quick-commerce / groceries) $315M Property Search 19 Property Search 3 Meesho (Fashion) 152 USA Groceries & Meal kits 16 B2B marketplace 2 140 Car search & rent 16 Travel 2 Job search 12 Group buying 1 Telemedicine 8 Food delivery 1 120 Pharmacy 3 Pet food 3

100 85 China Cumulative 1990-today New unicorns in 2021 80 82 Europe USA 152 USA 20 USA China 85 India 5 60 China United Kingdom 25 Germany 4 United 52 Rest of Asia India 24 Kingdom China 3 Germa 40 Germany 23 ny France 3 India France 9 Canada 2 France 25 RoW Brazil 8 20 Finland 1 Brazil Singapore 7 SingaporExplore 373 marketplace unicorns on the Turkey 1 Australia 7 Australe 0 1 new marketplaces platform. South Korea 6 Brazil Southia Spain 3 Korea 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Indonesia View all marketplace unicorns Source: Dealroom.co. Page / 17

Select new unicorns & $1B exits in 2021 Food Health Fashion

USA Select Unicorns in 2021 by geography

United States China Pipe.com, Weee!, Dutchie, Dispatch Health, Public.com Wolt Europe Weee! USA 726 Europe Gorillas, Getir, Vestiaire Collective, Smava, Back Rest of Asia Market, Bitpanda

RoW China Xingsheng Youxuan, RELX Technology,

Rest of Asia Groww, Meesho, Rebel foods, Zolara Group, China Infra.Market 277

Rest of World Europe MadeiraMadeira, 240

Rest of Asia 129 RoW 50 -- 200 200 200 200 200 200 200 200 200 200 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 0 1 2 3 4 5 6 7 8 9 3 Vertical integration and enablement Innovation essentially happens into two directions: greater ownership of the value chain and enablement with other products.

Creating demand

Discover Transaction Own logistics Own stock Own brands Demand & Catalogue & curate Minor financial risk Operational risk Balance sheet risk Product-market risk Supply Greater ownership of value chain Advertising Basically, two ways to innovate (listing fee and/or search ads) 1. Vertical integration take more Fee on transaction (charged to buyer and/or seller) risk (= asset heavy)

SaaS-enabled 2. Bundling with other products (= (subscription fee) not necessarily asset heavier but adds complexity) - SaaS / AI-enabled (AI to assist demand & supply) insurance, financing

Finance-enabled (financing, insurance, warranties) Add-ons / enablement

Source: Dealroom.co. Page / 19 Accelerated adoption during pandemic created tailwinds, resulting in companies beating expectations. Especially in Food, Health Tech, eCommerce.

Marketplaces are going after ever bigger markets, enabled by new models. Embedded finance is another “virtual last mile” to unlock much larger markets. Global consumer market size * Global consumer market size estimates * B2C Services healthcare, food, mobility, Early adopter markets that were Markets that were enabled by Markets where significantly more value can be created hospitality, education, etc enabled by the web itself smartphone adoption and by embedding finance into the marketplace 32% of GDP = $26 trillion increasingly last-mile logistics “In the past, IBM, Oracle or Microsoft sold technology to other companies, as a tool. They sold computers and software to GE, P&G and Citibank. Now there’s a generation of companies that both create Consumer tech Finance itself software and use it themselves to enter as bundle is another industry, and often to change it. new market (e.g. insurance Uber and Airbnb don’t sell software to taxi Media or loan) companies and hotel companies, Instacart eCommerce doesn’t sell software to grocery B2C Consumer finance Examples » marketplaces companies, and Transferwise doesn’t sell Entertainment software to banks. Banking Examples » Health $2T $3T <$1T <$1T $5T $4T $5T $6T $8T $8T $10T $2T $3T $5T $6T $6T $8T $8T $10T “What happens when everything’s Media Fashion Travel Shared Food Groceries Freelance Car Education Health Housing Insurance software? .... At a certain point, everyone

mobility delivery work ownership & banking has grown up with this stuff, everything is Food Media Travel Health Fashion Mobility Housing a software company, and the important banking Ben Evans Education Insurance & questions are somewhere else." Article written on his blog

Sources: Dealroom estimates, Worldbank, OECD, Eurostat, McKinsey for insurance & banking via A16Z. Freelance via Upwork and McKinsey. Outgrowing software Page / 20

Enablers »

Examples » $2 T

$3 T

$5 T

$6 T

$8 T

0T $1 What’s next: launching a series of reports, exploring new marketplace models starting with fintech enabled marketplaces. Stay tuned!

Fintech-enabled Responsible New homeownership B2B Marketplaces Regulated services marketplaces consumption models

Online real estate brokerage making Connecting shippers with curriers Prevents waste by selling high-quality Rent your future home while you save Hire and retain staﬀ in the healthcare instant cash oﬀers. online. local, imperfect and oversupplied food. for a down payment. industry.

Online car retailer that oﬀers instant Training and job placement in heavy buying, insurance and subscription. Connecting restaurants with suppliers Refurbished electronics marketplace. Co-own your home with option to industries (construction, oil & gas, online. increase equity ownership over time. defense and energy)

Marketplaces for agriculture inputs. Sell excess clothes & footwear Co-invests with home buyers. Compliance and carbon management A marketplace for construction inventory. platform. equipment.

Page / 21 A Appendix: learn more about marketplaces Demand Marketplace Supply

Marketplaces play a central role in the economy, with both marketplaces and the What is a marketplace? What is a “full-stack” marketplace? economy going digital.

Customer Transaction incl. Logistics Demand acquisition Listings payment & software tools Own inventory Production Supply

Financing marketing payments ﬁnancing, insurance consumer loans ﬁnancing

Enterprise software Homes, cars, Listings ✔ Asset light, profitable  Low revenue per user jobs, horizontal

Transactional ✔ Still asset light, higher take-rate Travel, delivery,

Consumer Traditional marketplace  Possible long-term strategic disadvantage internet marketplaces freelance

Full-stack ✔ On-demand Digital Control over user-experience marketplace  Operational risk, requires market density services Industrial tech marketplaces

Market maker ✔ Create new supply, verify quality Temporary trade Homes, cars, on the books New age (iBuying)  Capital intensity & risk, requires homogenous market jobs, products marketplace Agricultural tech ✔ Same-day delivery of goods, control over user experience eCommerce Fashion, groceries  High capital intensity, low margins

Cosmetics, food, Direct-to- ✔ Own entire product identity / experience / sometimes with physical stores banking, wellness, consumer  High capital intensity, limited assortment models lifestyle, eyewear Competing B2C

Source: Dealroom.co. Page / 23 Where are we in the New New models evolution of models? marketplaces? Managed

The first generation of online marketplaces marketplaces translated town squares and bulletin boards into eBay and Craigslist. A recognisable online migration. On-demand But marketplaces have evolved more in the last 20 years than in the previous 200.

Newer models like Uber and Cazoo have actually made the "marketplace" less visible Transactional Gen Z to the consumer, reducing transaction complexity. Responsible consumption

Regulated services With every iteration, the overarching trend Vertical has been to remove friction and unlock new specialists B2B marketplaces markets. In doing so, marketplaces are

becoming more “full-stack”, vertically Passion economy(1) integrating from shop front and transaction ‘98 to delivery and aftercare. Supply Mobile-first video shopping aggregators While asset light models like Craigslist have proved resilient with the defensibility of high ‘06 liquidity, full-stack scale eﬀiciencies, combined with an abundance of cheap 1990s 2000s 2005-2010 2010-2015 2015-2018 2019+ ‘05 capital, have led to a rise in asset heavy models in recent years.

Page / 24

New models New models

Managed

marketplaces

On-demand

Transactional

Vertical specialists

Supply

aggregators

1990s 2000s 2005-2010 2010-2015 2015-2018 2019+ Fashion and food delivery are the more fragmented segments. Pharmacy, pet food and telemedicine are more concentrated.

Diﬀerent segments are at vastly diﬀerent stages of development, and can broadly be split into three categories.

Food delivery $5.2 Travel $13.8 Fashion $11.9 Combined Travel and fashion were enterprise Mobility $4.6 digitally enabled by the web itself, thus more value Property Search $11.7 asset-light and more Heavily invested and Groceries $5.2 capital eﬀicient. Farfetch is innovating with new also competitive, Car search $5.6 logistics model. especially meal delivery. Telemedicine $23.0 Job Search $15.7 Pharmacy $28.1 Pet food $36.7 Jobs, cars and properties 1.0 was about search. 2.0 is about taking a bigger role in the transaction Education through embedded finance. Digital health Nr. of unicorns and groceries are the next big markets.

VC invested since 2015 Enterprise value per amount of VC invested

Source: Dealroom.co. Analysis of Google Finance data. Page / 25 Pet food $36.7B

Pharmacy $28.1B

Telemedicine $23B

Less fragmented Job search $15.7B

Travel $13.8B

Fashion $11.9B

More fragmented Property search $11.7B

Car search $5.6B

Groceries $5.2B

Food delivery $5.2B

Mobility $4.6B More capital eﬀiciency and value per unicorn

More fragmented

22% 18% 11% Remote monitoring & Online pharmacies Digital health Wearables insurance

7% 4% 3% Drug discovery & Decision support Digital 21% development with AI with AI Therapeutics

Digital care (incl. telemedicine)

7% 3% Hospital Surgical robotics & AR/VR operations

1% 1% Home test Practice 2% management Patient recruitment & clinical trials Abundance of venture capital emboldens asset-heavier models.

Asset-lighter Asset-heavier

Food delivery

Used cars

Mobility

Media

Banking

Healthcare

Housing

Travel

Jobs

Second-hand fashion

Inspired by a slide from Sonali de Rycker (Accel Partners) presented at the Marketplaces Conference 2018

Page / 26 Record amounts of dry powder in Europe, including mega funds with focus on marketplaces.

Select funds from 2020/21

Select new funds in 2020 and 2021 Early (Seed/Series A) Fundraising by European venture capital investors Global Europe Global Europe Speedinvest $230M Samaipata Ventures $110M Point Nine Capital $110M $230M $110M $110M LocalGlobe $159M $20B Stride.VC $144M Moonﬁre - $60M

$15B $14B Late and Growth (Series B+) $159M $144M $60M Endeit Capital $304M $11B Target Global $330M Highland Europe $770M Felix capital $300M $9.1B $304M $330M $770M HV Capital $620M $7.4B

$6.2B

$300M $620M $136M

https://app.dealroom.co/new-funds/f/locations/anyof_Eur 2015 2016 2017 2018 2019 2020 2021YTD View all new funds ope/new_fund_type/anyof_Venture%20Capital/years/any of_2017?showStats=YEAR

Source: Dealroom.co Page / 27 Public marketplaces and IPOs are hot.

Stock performance of major marketplaces Aggregate Enterprise Value of IPOs and SPACs IPOs & SPACs of marketplaces % Change since Jan 2020 Deliveroo $6.7B -35% Mar 2021 Deliveroo IPO $6.7B -35% Mar 2021

Amazon $1.7T +76% $235B Auto1 IPO Auto1 $12B -15%$12B Feb 2021 -15% Feb 2021 ▊ Traditional IPOs Deliveroo IPO $6.7B Mar 2021 ▊ Announced or completed SPAC Mergers Wish IPO $8B -40% Dec 2020 Alibaba $640B +9% Auto1 IPO $12B Feb 2021 Wish $8B -40% Dec 2020 Wish IPO $8B Dec 2020 Allegro IPO $16B +43% Sep 2020 Meituan $220B +175% $72B Allegro $16B +43% Sep 2020 Allegro IPO $16B Sep 2020 Coupang IPO $78B +31% Mar 2021 $169B Pinduoduo $162B +222% $164B Coupang IPO $78B Mar 2021 GoodRx IPO Coupang$15B +16%$78B Sep 2020 +31% Mar 2021 $6.0B GoodRx IPO $15B Sep 2020 GoHealth IPO $4B -44% Jul 2020 $182B +38% $15B +16% Sep 2020 Prosus GoHealth IPO $4B Jul 2020 GoodRx $110B Hims & Hers SPAC $2B +41% Jan 2021 $163B Hims & Hers SPAC $2B Jan 2021 Shopify $146B +189% Airbnb IPO GoHealth$106B +125%$4B Dec 2020 -44% Jul 2020 Airbnb IPO $106B Dec 2020 DoorDash IPO $49B +36% Dec 2020 JD.com $121B +107% Hims & Hers $2B +41% Jan 2021 $156B DoorDash IPO $49B Dec 2020 Cazoo SPAC $7.0B Announced Mar 2021 Cazoo SPAC $7.0B Mar 2021 Uber $110B +91% $34B Airbnb $106B +125% Dec 2020 SPAC $39.6B Announced Apr 2021 Grab SPAC $39.6B Apr 2021 Grab Booking.com $100B +18% TalkSpace SPAC $1.4B Jan 2021 TalkSpace SPAC DoorDash$1.4B Announced$49B Jan 2021 +36% Dec 2020 Lilium SPAC $3.3B Mar 2021 Snap Inc $96B +281% 2017 2018 2019 2020 2021

Source: Dealroom.co Page / 28 The broader marketplace & ecommerce ecosystem is increasingly connected.

Discovery Insurance Logistics D2C banking, trading

Buy now pay later Google Lending The king of search/intent. Has been moving into Fintech Potentially levelling the vertical search for long playing field by enabling asset-light players to have Marketplace stack full-stack capabilities Amazon Financial Already #3 in U.S. online ads. Ad Advertising Logistics platform strategy likely products followed by other marketplaces like Deliveroo etc Own product Software tools Private labels

Competing directly with Software marketplaces & eCommerce The kings of interest. Are creating marketplaces for sellers (Tikitok also for gigs) Software directly competing SaaS-first with add on with Amazon’s platform marketplace for doctors

Page / 29 Venture capital investment into Marketplaces by segment.

Venture capital Jan-April 2021

Logistics & Delivery $10.3B (+382% YoY)

Mobility $4.9B (+86%)

Investing $3.6 (+425%)

Health platforms $2.3B (+203%)

Apparel $1.2B (+747%)

Gaming $1.1B (+1600%)

Lending $0.7B (+4%)

Travel $0.2B (-67%)

Explore data

Page / 30 Mobility (excl. Car search) - what is it? - micro Fashion is the leading segment, by the number of Food delivery and travel are the largest segments, mobility, shared mobility or would it also unicorns and $1B exits as well as future unicorns. by combined enterprise value include here car subscriptions or online car sales (e.g. Cazoo / Auto1?)

Cumulative number of unicorns and $1B exits Cumulative value of unicorns and $1B exits

Fashion 48 Food delivery 33 Food delivery $380B Travel 24 Shared mobility 22 Travel $337B Property Search 19 Groceries & Meal kits 16 Fashion $297B Car search & rent 16 Job search 12 Telemedicine 8 Shared mobility $249B Pharmacy 3 Pet food 3 Property Search $185B

Cumulative number of future unicorns Groceries & Meal kits $144B

Fashion 41 Car search $129B Travel 24 24 Property Search Telemedicine $101B Car search & rent 22 Food delivery 20 Groceries & Meal kits 17 Job search $84B Telemedicine 11 Job search 9 Pharmacy $78B Shared mobility 6 Pet food 3 Pet food $45B Pharmacy 1

Source: Dealroom.co Page / 31 The biggest gains are in delivery The biggest growers by absolute. The fastest growers, relative. and, paradoxically, travel. Market capitalization absolute growth since January 2020 Market capitalization relative growth since January 2020 Amazon $656B Coupang 638% Meituan $126B GoodRx 416% Pinduoduo $98B Etsy 362% Shopify $85B Jumia 361% Added market capitalization since Jan 2020 ($B) Amazon 656 Netflix $66B Upwork 344% Meituan 126 JD.com $62B Farfetch 342% Pinduoduo 98 Airbnb $60B Allegro 333% Shopify 85 Coupang $52B Shop Apotheke 299% Delivery $232B Netflix 66 Mercado Libre $40B Redbubble 276% JD.com 62 Uber $37B DoorDash 264% Travel $177B Airbnb 60 Alibaba $34B Pinterest 263% Coupang 52 DoorDash $29B HelloFresh 259% Mobility $81B Mercado Libre 40 Carvana $27B Pinduoduo 233% Pinterest $26B Groceries $72B Uber 37 Redfin 224% Chewy $18B 216% Alibaba 34 Zooplus Fashion $70B Zillow $18B Airbnb 212% DoorDash 29 Spotify $17B Shopify 202% Carvana 27 Car search $62B Etsy $17B Zillow 201% Pinterest 26 Delivery Hero $15B Carvana 198% Home search $53B Chewy 18 Booking.com $14B Zur Rose 192% Zillow 18 Teladoc $14B Meituan 188% Digital Health $39B Spotify 17 Farfetch $11B The Hut Group 177% Etsy 17 Job search $21B eBay $11B Chewy 175% Delivery Hero 15 Zalando $11B Revolve Group 168% Booking.com 14 GoodRx $11B Mercado Libre 160% Teladoc 11 Allegro $10B Chegg 134% Farfetch 11 VIP shop $9B eBay 11 HelloFresh $9B Zalando 11 Expedia $8B GoodRx 11 Ocado $8B Allegro 10 Chegg $6B VIP Shop 9 Fiverr $6B HelloFresh 9 Source: Dealroom.co Expedia 8 Page / 32 Ocado 8 Chegg 6 Fiverr 6

Coupang 638% GoodRx 416% Etsy 362% Jumia 361% Upwork 344% Farfetch 342% Allegro 333% Shop Apotheke 299% Redbubbble 276% DoorDash 264% Pinterest 263% HelloFresh 259% Pinduoduo 233% Redfin 224% Zooplus 216% Airbnb 212% Shopify 202% Zillow 201% Carvana 198% Zur Rose 192% Meituan 188% The Hut Group 177% Chewy 175% Revolve Group 168% Mercado Libre 160% Chegg 134% 370+ marketplace unicorns, with a combined value of $5.0 trillion

Number of Unicorns and $1B+ exits by country Dive into industry landscapes USA 140 app.europeanstartups.co/lists/16352

China 82 United Kingdom 25 Germany 22 Compare ecosystems India 21 app.europeanstartups.co/charts France 9 app.europeanstartups.co/metrics Brazil 8 Singapore 7 Australia 7 South Korea 6 Indonesia 5

View all unicorns

Page / 33 Methodology

Definition of marketplace Venture capital investment Valuation Data source

Marketplace in this report is a digital Investment numbers refer to venture Company valuations are based on Dealroom’s proprietary database and platform connecting buyers and capital investment rounds such as their market capitalisation if public software aggregate data from sellers. Various models are listed on seed, series A, B, C, etc and growth or, if private, latest transaction value, multiple sources: harvesting public page 23. equity rounds. It excludes debt or which is either announced or information, user-generated data other non-equity funding, lending estimated by Dealroom based on verified by Dealroom, data capital, grants and ICOs. market-based assumptions. engineering. All data is verified and curated with an extensive manual Buyouts, M&A, secondary rounds, and Share prices are updated to April process. IPOs are treated as exits and not 2021. included in funding data. Most underlying data from the report is available online via Investment rounds are sourced from marketplaces.dealroom.co public reports including press releases, news, filings and verified For more info please visit user-submitted information. dealroom.co or contact [email protected] Data as of date of this report.

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