Throughout the waning days of the very first dot-com boom, some of the biggest names in venture capital purchased directory sites and marketplaces whose sole function was to combine details and foster transparency in industries that had stayed opaque for decades. The thesis was that thousands of small companies were making specialized products taken in by bigger businesses in substantial markets, however the reach of smaller gamers was limited by their reliance on a sales structure built on conferences and individual interactions.

Business making pharmaceuticals, chemicals, construction products and medical supplies represented trillions in sales, however those substantial aggregate numbers conceal how fragmented these supply chains are– and how challenging it is for buyers to see the breadth of sellers readily available.

Now, similar to the way service designs popularized by Kozmo.com and Webvan in years previous have actually considering that been reincarnated as Postmates and DoorDash, the B2B directory and marketplace rises from the investment graveyard.

The first indication of life for the directory site model came with the success of GoodRX back in 2011. The business showed that when info about pricing in a previously nontransparent industry becomes available, it can release a gush of new need.

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.