4️⃣ Governance (my favourite)
There is nothing more cringeworthy than a trader starting or investing in a platform or a marketplace. NGMI.
‘Oh really, you want to disrupt your entire business and the shareholders and Board support that?’ 😅 Good luck.
If you are building a marketplace for a dedicated ecosystem, the governance of that ecosystem is also very important. The ecosystem should ideally chase common goals, pursue shared values and address common risks.
Independence and objectivity is a super power when it comes to marketplaces, particularly in agriculture.
5️⃣ Physical Infrastructure
Agriculture deals with physical goods. Do you need to?
Can you just match buyers and sellers electronically or will physical inspections need to take place at some point?
What about shipping and transport?
6️⃣ Digital Infrastructure
Is the market ready for digital innovation and can buyers and sellers interact with the marketplace? Are business needs met for reporting and decision making?
In relation to financial infrastructure specifically - Payments, settlements, clearing, guarantees. Is there a mechanism for this or do you need to create one? No, that is not a ridiculous question.
I loved the recent Agtech so what article and podcast covering this issue.
Patient capital, by the way, is one of the major barriers for ALL Agri Fintech models 😌.