I love digital marketplace businesses! If you track my career in my two plus decades in Silicon Valley, you’ll see a lot of them. I’ve been an operator and/or investor in the A to Z of marketplace companies across time and place — from Airbnb, Belong, and Cadre to eBay, Incredible Health, Instacart, Neighbor, OpenTable, Rappi, Wonderschool, and others — so I have had a lot of time to think about what I love (and don’t!) about this category.
Here are a few of the reasons I like marketplace business:
Another theme that has echoed throughout my career is food. I put myself through school by cooking in restaurants, and I ended up getting pretty good at it — I am an “award-winning chef” (I was brunch chef at the “Best Brunch in Philadelphia” as voted by Philadelphia magazine). And the resulting detailed understanding of the dynamics in the restaurant business is one of the key reasons OpenTable was interested in me leading the company.
A few months back, Shef, which aspires to be a marketplace for authentic meals from local ‘shefs’, knocked on our (now virtual) doors. They enable cooks who are fluent in any of a broad selection of different cuisines to earn money doing the cooking they love. And consumers get authentic ‘home-cooked’ meals from experts in their respective cuisine. It was love at first sight (or more fittingly, “bite”).
It also intrigued us from a business perspective:
At the time we invested, Shef was operating only in San Francisco and New York. They continue to expand their service in these cities, but have also started expanding into new markets including Seattle, Chicago, Houston, and Boston. Every market is showing a robust appetite for Shef!
The Shef team has the perfect background to chase this opportunity. Cofounder Joey Grassia founded two different food-related companies prior to Shef — KUTOA Health and Steamm. And cofounder Alvin Salehi is an attorney who worked as a White House technology advisor in the Obama administration and founded Code.gov. The combination of food operations and legal/regulatory expertises strikes us as exactly the right combination to chase this opportunity.
So, if you’re fortunate enough to reside in a city that Shef currently serves, give it a try. In addition to receiving high quality, authentic and affordable meals, you’ll be helping to economically empower members of your community who are exercising their unique craft!