E43: Secrets to Scaling a Marketplace Business with Jack Greco, VC and co-founder of ACV Auctions
In this episode, CJ interviews Jack Greco, the co-founder of ACV Auctions, a publicly traded B2B marketplace for automobiles. Now Greco is a VC and Angel investor. In this conversation they cover the human element necessary in any marketplace business, setting up makep-good budget for mistakes, business seasonality, and how the auction model affect supply and demand liquidity. This is truly a masterclass in all things marketplaces and valuable for anyone who is interested in businesses which depend on a high degree of trust. If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist. — PSA: Run The Numbers has a new Spotify and Apple show link. Follow the links to subscribe and ensure you'll never miss an episode Apple: https://podcasts.apple.com/us/podcast/run-the-numbers/id1723787140 Spotify: https://open.spotify.com/show/0zQCkklNnVgMD364kCW5SV — SPONSORS: NetSuite provides financial software for all your business needs. More than 37,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist. Attio is the next generation of CRM. It’s powerful, flexible and easily configures to the unique way your startup runs, whatever your go-to-market motion. The next era deserves a better CRM. Join OpenAI, Replicate, ElevenLabs and more at https://bit.ly/AttioRTN Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year. Thoropass provides complete compliance management, continuous monitoring, and security audits through intuitive software and expert guidance – allowing you to do business with confidence. Learn more: https://bit.ly/Thoropass 🔒 Tropic is the next-generation Procurement Platform that’s helping modern CFOs take control of their budgets and bottom line. By combining approval workflows, supplier management, and pricing benchmarks all in one place, Tropic makes savings opportunities easy to find and act on. 🌴 Visit www.tropicapp.io/metrics to learn how. — FOLLOW US ON X: @cjgustafson222 (CJ) @turpentinemedia — TIMESTAMPS: (00:00) Preview (02:20) Sponsors: NetSuite | Attio (05:12) Understanding the Human Aspect of Business (09:07) Using a 'Make Good Budget' in Business (13:18) Marketplace is the Cart, Not the Horse (Understanding the Nature of Marketplaces) (14:59) Sponsor: Maxio | Thoropass (17:27) Creating Liquidity From Marketplaces (22:55) Auction in Marketplaces: Where Kinetic Energy Dances On (26:12) Seasonality in Business (30:45) The Role of Timing in Business Success (32:25) How ACV Evolved and Developed its Competitive Edge (35:52) Human Interaction - A Necessary Spice (39:04) Sponsor: Tropic (39:48) The Single Decision that Unlocked the Most Value (42:49) Jack's General Philosophy Around Setting a Take Rate (47:11) Payment Responsibility and Demand Generation (48:18) The Colorful People in the Used Car Business (and other wacky operational things) (50:44) The Importance and Frequency of Investor Updates (52:51) Wrap This show is produced by Turpentine: a network of podcasts, newsletters, and more, covering technology, business, and culture — all from the perspective of industry insiders and experts. We’re launching new shows every week, and we’re looking for industry-leading sponsors — if you think that might be you and your company, email us at erik@turpentine.co.