How Novi Used a SaaS Business Model to Generate Demand Before Going Marketplace - CEO Kimberly Shenk

One of the classic platform growth strategies is to provide single-user utility. This is a strategy in where you attract one side of your multi-sided platform by offering that user group value even if the other side never shows up.

In the case of Novi, they focused on demand by bringing brands on board and building relationships with them. They offered brands (AKA the demand side of a raw materials transaction) a SaaS tool aiding in formulation, product development, and ingredients transparency. However, Novi always had the intention of transitioning to a marketplace model.

Once Novi had aggregated enough demand in the form of brands using their SaaS offerings, they were able to onboard suppliers and transition from a SaaS model to a marketplace. —

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