On Wednesday 26th, Citizen’s JMP analyst Nicholas Jones released an industry report on the internet sector, discussing B2B marketplaces to watch.

The analyst commented, “Internet 5 As B2B marketplaces become more present, we believe investors may find challenges in valuing these companies. On one hand, several B2B marketplaces are deploying similar monetization models seen in consumer-facing businesses – i.e. take rate transaction models. On the other hand, the go-to-market for a B2B business is more involved, requiring a sales force with a land and expand strategy. The effort to integrate into a business’s workflow results in stickier customers on the demand side of the platform. In our view, B2B marketplace valuations belong somewhere between consumer and vertical SaaS. However, we see an argument to be made that the platforms could be considered “usage based” and skew closer to vertical SaaS than consumer as opposed to “transaction based”, which may trade closer to consumer businesses.”